For U.S. companies with unpaid invoices from customers in Mexico.
When a Mexican customer stops paying, the right strategy depends less on the amount owed and more on the documents you hold. The same unpaid debt can lead to a fast, asset-securing lawsuit or to a long ordinary trial, depending on whether there is a signed promissory note. Here is how the main options compare.
Option 1: The pagaré (promissory note) and the executive lawsuit
A pagaré is a negotiable instrument governed by Mexico’s General Law of Negotiable Instruments and Credit Transactions. Because it is an “executive” title, it allows the creditor to file a juicio ejecutivo mercantil: at the start of the case, the court orders the debtor to pay and, if it does not, assets can be seized (embargo) to secure the debt before the case is decided.
Key points for U.S. creditors:
The note must meet strict formal requirements; a defective pagaré may lose its executive force.
The collection action on a pagaré generally prescribes three years after maturity. Do not let notes sit in a drawer.
Moratory interest can be agreed, but Mexican courts can reduce rates they consider usurious.
If you sell on credit to Mexican customers, the single most useful step is to have a pagaré signed (with a guarantor, or aval, where possible) as part of your credit terms.
Option 2: Invoices only — oral or ordinary commercial proceedings
Invoices (CFDI), purchase orders, emails and delivery records are valuable evidence, but they are not executive titles. Without a pagaré, the creditor generally files an oral commercial proceeding or an ordinary commercial proceeding, depending on the amount. There is no seizure at the outset, so the case takes longer and the debtor has more time to move assets. Good documentation of delivery and acceptance of goods or services is what wins these cases.
Option 3: Negotiated settlement
Many debts are resolved by a structured settlement: a payment plan, new pagarés for each installment and, where possible, a guarantee. A settlement agreement can be ratified before the court (or formalized through Mexico’s alternative dispute resolution mechanisms) so that, if the debtor defaults again, it can be enforced directly instead of starting over. A credible lawsuit, or a seizure already in place, is usually what brings the debtor to the table.
Which one is right?
You hold a valid pagaré: executive lawsuit, usually with settlement talks in parallel.
Invoices only, solvent debtor: demand letter, then oral or ordinary proceedings; consider settlement with new pagarés.
Debtor in financial distress: move quickly to secure assets and assess whether insolvency (concurso mercantil) is likely.
Before you write it off
Send us the documents you have (contract, invoices, pagarés, correspondence) and we will tell you which route is available, how long it is likely to take and what it should cost. Our litigation team in Ciudad Juárez handles commercial collection for U.S. and Mexican businesses.
Schedule a call with our team →
This article is general information about Mexican law as of its publication date and is not legal advice. Roldán Venegas, S.C. is a Mexican law firm. Our services consist of advice and representation on matters governed by Mexican law, before Mexican authorities and courts. We do not offer legal services under U.S. federal or state law through this website. Contacting us does not create an attorney-client relationship. Attorney advertising.
