14. What judicial prejudgment remedies are available to creditors in Mexico?

The Mexican Commercial Code provides for several precautionary measures, including a seizure of goods order (embargo or secuestro), which has both features of the attachment and garnishment orders. Such remedy -which we will call throughout this calling attachment order-, will therefore allow us to seize property in the control of the debtor or to levy on real property by an act of recording, and also to levy on the debtor's tangible personal property in the possession of a third party or to levy on an intangible obligation owed to a debtor (including bank accounts).

Although the remedy is fairly available to all creditors, there are certain conditions and requirements that must be fully complied with, since the measure is granted as an ex parte relief.

Firstly, the petition for an attachment order as a precautionary measure has to be well supported by documents or witnesses showing that 1) petitioner has a prima facie underlying claim on the merits; and 2) there's a potential risk that debtor will hide or transfer ownership rights on his real or personal property.

Secondly, once the attachment order is granted, the creditor must post a bond that will indemnify the debtor for damages if there's any wrongful attachment, or if creditor fails to obtain judgment in the suit. The attachment will be then executed only after the bond is posted. (The amount required for the bond is left to the court's discretion, and generally ranges from 10 to 20% of the claim).

Thirdly, since the attachment is a remedy ancillary to a suit, the same will be ineffective if there's no suit filed within three days of the execution. Such term can be extended if the suit has to be filed or followed in any foreign jurisdiction.

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