Asia Β· Civil lawNY CONVENTION

Debt Collection in Thailand

Thailand carries the shortest deadline of any major trading jurisdiction in Asia. A merchant's claim for the price of goods sold is subject to a two-year prescription period - not six, not five. A European supplier working from a home-market assumption can lose a Thai claim while the account is still being reconciled internally.

πŸ›οΈ Bangkok Chonburi Rayong Chiang Mai Songkhla
Capital
Bangkok
Legal System
Civil law
Currency
THB - Thai Baht
Courts
Courts of Justice Β· IP&IT Court

Two Years for Traders' Claims

The Civil and Commercial Code applies a two-year prescription period to a merchant's claim for the price of goods supplied or work done in the ordinary course of business, running from the date the claim became enforceable. Longer periods apply to other categories of obligation, but for a supplier the two-year figure is the operative one.

This is the single most important fact on a Thai file. A written acknowledgement of the debt or a part payment restarts the period, so a debtor who keeps promising payment may inadvertently be preserving your claim - but that has to be documented, not assumed. Where invoices are approaching the deadline, the step that stops the clock takes priority over continued negotiation.

A Court Built for Cross-Border Trade

Thailand operates a specialised Central Intellectual Property and International Trade Court which, despite its name, handles international sale of goods, carriage and trade finance disputes alongside intellectual property matters.

For a foreign supplier this is a materially better forum than the general civil courts: the judges deal with cross-border trade documentation routinely, the procedure is designed for it, and appeals run on a dedicated track. Where a claim qualifies, it should be brought there rather than in a provincial court of general jurisdiction.

Arbitration and Award Enforcement

Thailand is a party to the New York Convention and has an established arbitration framework, with institutions in Bangkok administering commercial cases. Where a contract provides for arbitration the clause governs, and enforcement of an award proceeds through the courts subject to the Convention's grounds.

For contracts still being negotiated, an arbitration clause with a seat outside Thailand is a common and defensible choice for a foreign supplier - but the two-year prescription point applies regardless of forum, so it does not reduce the urgency.

How Long Does a Thai Claim Take?

StageTypical DurationCost
Formal demand
Written demand in Thai, negotiation
3–5 weeksLow
IP&IT Court claim
Specialised international trade forum
10–20 monthsHigh
General civil claim
Where the case does not qualify
1–3 yearsHigh
Arbitration
Where the contract provides for it
1–2 yearsHigh
Enforcement
Execution against assets
4–10 monthsMedium

How Does SXB Global Handle a Thai Case?

We check the prescription position before anything else and say plainly if the file is close to the deadline - on a Thai claim that is more important than any strategic judgement about route. We then assess whether the matter qualifies for the specialised trade court. Contact is conducted in Thai. Where legal proceedings become appropriate, SXB Global coordinates the instruction of appropriately authorised local counsel. Legal services are provided by the relevant independent legal professionals.

Prescription Check
Establishing the two-year position and whether anything has restarted it.
Pre-Legal Recovery
Written demand in Thai with the claim fully particularised.
Local Counsel Coordination
Where proceedings become appropriate, we coordinate authorised Thai counsel.
Debtor Intelligence
DBD registry filings, group structure and solvency indicators.

Thailand - FAQ

Is the limitation period really two years?+
For a merchant's claim for the price of goods supplied or work done in the ordinary course of business, yes. Other categories carry longer periods, but for a supplier two years is the working figure - and it is the most common reason a Thai claim fails.
Can the period be restarted?+
A written acknowledgement of the debt or a part payment restarts it. A debtor who keeps promising payment in writing may be preserving your claim without realising, but it has to be documented rather than assumed.
What is the IP&IT Court?+
A specialised court that handles international sale of goods, carriage and trade finance disputes as well as intellectual property. For a foreign supplier it is a considerably better forum than a general civil court, and a qualifying claim should be brought there.
Does SXB Global litigate in Thailand?+
No. We are a commercial debt recovery and receivables management consultancy, not a law firm, and we do not provide legal advice or legal representation. Where legal proceedings become appropriate, we coordinate the instruction of appropriately authorised local counsel; legal services are provided by those independent legal professionals.

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