Assessing the debt and the debtor
Start with the contract, which may say which law applies, where disputes go, and whether arbitration is required. Then look at the debtor's situation, including whether it is still operating, whether it has assets in the United States, and whether other creditors are pursuing it. Credit insurance, a letter of credit, or a parent company guarantee may give you a source of payment other than the debtor itself. Time limits for bringing claims vary by country and by type of claim, and some are shorter than people expect, so the age of the debt matters. A clear record of invoices, delivery, and any acknowledgment of the debt strengthens whichever route you choose.
Routes to payment
A formal demand from counsel, sometimes sent through local counsel in the debtor's country, resolves some matters. Collection agencies with offices abroad are an option for smaller commercial debts. If the contract has an arbitration clause, an award can often be enforced in many countries under the New York Convention. A U.S. court judgment is a different matter: there is no broadly applicable treaty for enforcing U.S. judgments abroad, so recognition depends on the law of the country where the debtor's assets are. Suing directly in the debtor's country is sometimes the more practical path when all of its assets are there.
Choosing a path with us
We review the contract, the payment history, and what is known about the debtor's assets, and then compare the routes by cost and by the practical chances of collecting. We coordinate with counsel in the debtor's country when local action is needed. If you are a foreign creditor trying to collect from a debtor in the United States, we look at whether your judgment or award can be recognized here and how U.S. assets might be located. Bring the contract, invoices, shipping documents, and all communications with the debtor about the unpaid amount.
