Overdue receivables
Clients who don't pay invoices, bounced checks, defaulted debt acknowledgments. We start with demand letter — 40% of cases settle without suit. If not, we execute judicially.
Dispute resolution
Debt collection and dispute resolution in Guatemala
When a client won't pay, a vendor breaches, a partner blocks or a labor conflict escalates — we design the fastest and most cost-effective strategy. We always start with out-of-court routes (negotiation, mediation, demand letter) and escalate to litigation only when needed.
What we solve
Disputes we handle.
Breach of contract
Vendor didn't deliver, client didn't pay advance, provider abandoned. We seek specific performance or contract termination with damages.
Partner disputes
Decision blocks, unfair competition among partners, book manipulation, exclusion. Strategy from enforcing shareholders' agreement to nullity action.
Employer labor conflicts
Claims before Labor Court or Labor Ministry, conciliation hearings representation, defense against reinstatement when unionized.
Commercial or criminal fraud
Scams, misappropriation, misuse of confidential information, unfair competition. Parallel criminal and civil actions for recovery.
Service phases
Step by step.
- Legal position analysis: evidence, gaps, cost-benefit of each option
- Technical demand letter — often enough to collect
- Direct negotiation with counterparty or their counsel
- Mediation at specialized centers when possible
- Commercial arbitration at CRECIG or other centers
- Civil or commercial lawsuit before competent court
- Enforcement actions on credit instruments (check, draft, promissory note, cambial invoice)
- Interim measures (attachments, restraining orders)
- Hearing and court representation
- Judgment enforcement to effective recovery
- Defense against received claims
Cases we refer
When we bring external specialists.
- Specialized criminal litigation — coordinated with criminal counsel
- Complex tax litigation — coordinated with tax specialist
- Constitutional litigation (amparos) — coordinated when complex
- Cases outside Guatemala — local counsel in target country
How we work
From claim to collection: tiered strategy.
-
01
Diagnosis and cost-benefit
Case strength, probable cost, timeline, real recovery probability. Honest recommendation (even if not to sue).
Days 1–3 -
02
Demand letter
Technical letter with deadline. Many debtors pay here to avoid litigation costs.
Days 3–14 -
03
Negotiation or mediation
If there's willingness, we seek a deal (payment plan, discount, debt acknowledgment with guarantee).
Weeks 2–6 -
04
Lawsuit or arbitral request
If no deal, we file with claims properly sized. Interim measures if concealment risk.
Weeks 4–8 -
05
Court phase
Hearings, evidence, briefs. Clear updates step by step.
Months 6–18 -
06
Enforcement
With final judgment, we execute: attachments, auctions, bank garnishments, until recovery.
Months 12–24
Fee models
How we bill.
We adapt fee structure to case type and economic stake. Most common options:
Fixed fees
from Q3,500
Demand letters and defined-scope cases.
Stage fees
by stage
Tiered payment: suit, evidence, judgment, enforcement.
Hybrid fees
fixed + success
Reduced fixed + percentage on effective collection.
Contingency
15–30% of amount
Collections where you pay only on recovery. Subject to case evaluation.
Litigation retainer
from Q5,000/mo
For companies with constant volume.
Court costs, experts and procedural fees paid separately. Scoped upfront.
FAQ
Litigation and collection questions.
How long does judicial collection take in Guatemala?
Depends on the title. Summary execution with clear title (check, draft, promissory note) can take 6–12 months to judgment plus enforcement. Ordinary processes (no executive title) can run 18–30 months. Settlement is always faster.
How effective is a demand letter?
In our practice, 30–50% of debtors pay or enter negotiation after a well-drafted letter. Cost is a fraction of litigation — we always try first.
What documents do I need to start collection?
Ideally: signed contract, overdue invoice, proof of delivery or service, communications where the other party acknowledges debt, debtor ID data. If pieces are missing, we advise how to reinforce evidence before escalating.
How much does a lawsuit cost in Guatemala?
Varies by process type, amount and instance. Attorney fees plus court fees, service costs and experts. We give closed quotes with scenarios (negotiation, judgment, enforcement) before accepting.
Can I collect from someone with no assets?
Real risk in judicial collection. An insolvent defendant makes a favorable judgment worth little. We do preliminary asset investigation (property, vehicles, banks, shares) before suing — so you don't chase ghosts.
Is arbitration always preferable to court?
Not always. Arbitration (CRECIG or other) is faster (6–12 months) and confidential, but has higher upfront costs and requires contractual agreement. For clear debts with executive titles, traditional summary trials are often cheaper. Case-by-case.
What if I'm sued?
Don't ignore — deadlines run and default is costly. Assess substantive or procedural defense. Strategy: technical opposition, counterclaim, negotiation or partial acceptance. Worst call is not responding in time.