Debt recovery in United States

Collecting commercial debts in the United States is both straightforward and bewildering, often within the same case. Straightforward because the US legal system offers powerful enforcement tools — prejudgment attachment, UCC liens, and a bankruptcy framework that compels disclosure. Bewildering because the US is not one jurisdiction but fifty-one (fifty states plus the District of Columbia), each with its own civil procedure rules, statute of limitations periods, licensing requirements for collection agencies, and judicial temperament.

A debt owed by a company in Texas is not collected the same way as a debt owed by a company in New York, and neither is collected the same way as a debt owed by a company in California. Texas has a four-year statute of limitations for written contracts. New York has six years. California has four years but applies a "discovery rule" that can extend it. These aren't academic distinctions — filing in the wrong jurisdiction or missing a limitations deadline means the debt becomes legally unenforceable, regardless of its commercial validity.

For international creditors, the US presents an additional challenge: the Fair Debt Collection Practices Act (FDCPA) and its state-level equivalents regulate collection activity with a specificity that would surprise creditors accustomed to European frameworks. While the FDCPA technically applies to consumer debts, many states have enacted commercial debt collection regulations that impose licensing requirements, restrict communication methods, and mandate specific disclosures.

The good news is that the US commercial court system, once engaged correctly, is remarkably effective. Summary judgment — a court order resolving the case without trial — is available in every state for claims where the facts are undisputed. For a documented commercial debt with a signed contract and unpaid invoices, summary judgment is often achievable within 90 to 120 days.

US enforcement tools are powerful. Domestication of foreign judgments allows international court orders to be enforced across state lines. Writs of execution authorise the seizure of bank accounts and business assets. Judgment liens attach to the debtor's real property. And the Chapter 11 bankruptcy process, while complex, includes discovery mechanisms that reveal the debtor's full financial position.

INTERCOL's US network partners are licensed in all 50 states and understand both the federal and state-specific requirements. For international creditors pursuing American debtors, we provide something that most overseas law firms cannot: a structured, compliance-compliant collection process that navigates the jurisdictional complexity and produces enforceable results.