19. Does it make a difference how long the account has been overdue?

Yes. The statute of limitations in Mexico for enforcement of commercial transactions made within the country is one year for retail sales and ten years for wholesale. On international or cross-border sales, the statute of Limitations is four years according to Vienna Convention. For a criminal matter where a debtor committed fraud to obtain credit or merchandise, the Statute of Limitations is one year upon time of notice or acknowledgement of such crime, extendable to two years on special cross-border matters.

Besides legal constraints, collectability has much to do with how fast our actions are, and how fast the claim is pursued when compared with other creditors. The premise "first come, first served" is proven to be true when a debtor has hit financial crisis. Undercapitalized businesses are common in Mexico (maybe everywhere), so the few assets a company has to pay its debts with will be allocated to those who seize assets first, and execute upon them.

In addition, it is common to see how debtors in Mexico very easily transfer the company's property (assets) to another business without a proper liquidation process. Although there is legal recourse against fraudulent conveyance of goods, this usually carries a longer and complex proceeding that prevents an immediate recovery. Therefore, it is highly recommended to act fast and execute upon debtor's property even faster.

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