Debt Collection Argentina: A CFO's Guide to Recovery in Buenos Aires
To recover a B2B commercial debt in Argentina, foreign creditors must navigate three legal layers: the substantive law of the Código Civil y Comercial de la Nación (Law 26.994, in force since 1 August 2015), the procedural law of the Código Procesal Civil y Comercial de la Nación (CPCCN), and the macroeconomic risk created by Argentina’s periodic cepo cambiario (foreign exchange controls). The general limitation period for commercial obligations is 5 years under Article 2560 of the Código Civil y Comercial; periodic obligations such as interest accrue on a shorter 2-year period under Article 2562.
Interruption of limitation is effected by carta documento (certified registered letter) under Article 2546, which creates a dated proof of demand and restarts the 5-year clock. The most powerful fast-track judicial route is the juicio ejecutivo under CPCCN Articles 520 to 605: a creditor holding an executive title — a pagaré (promissory note), cheque, letra de cambio, or notarised debt acknowledgment — can file and obtain an immediate embargo (asset freeze) at the start of proceedings, before the debtor is heard. The debtor’s defences in a juicio ejecutivo are limited to a closed list (no general disputation of the underlying obligation), meaning the procedure typically produces an enforceable title in months rather than years for well-documented executive files. Argentina ratified the New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards in 1958; international arbitral awards from recognised seats enforce through the exequatur procedure before Argentine federal courts.
An Italian machinery exporter has USD 340,000 outstanding from a Buenos Aires industrial distributor — three invoices under a signed distribution agreement, 130 days overdue. The distributor is still trading. Strategy analysis: the signed distribution agreement supports a juicio ejecutivo (executive title) filing only if the obligation is reduced to a specific liquid instrument; otherwise the procedure available is juicio ordinario (ordinary proceedings, longer timeline). Recommended approach: instruct Argentine counsel in Buenos Aires to issue an immediate carta documento citing the Código Civil y Comercial Art.2546 to interrupt the 5-year limitation, and simultaneously propose a notarised debt acknowledgment to the distributor — which, if signed, would create an executive title qualifying for the faster juicio ejecutivo procedure with embargo at filing. FX exposure: if settlement is reached, Argentina’s cepo cambiario means USD/EUR repatriation may face Central Bank BCRA approval requirements. Contracts should specify USD/EUR denomination and indexation clauses. If the distributor refuses a notarised acknowledgment, ordinary proceedings with pre-cautionary measures (medidas cautelares) can still freeze assets prior to judgment. Argentina’s arbitration infrastructure (IAR, CIAC) is available if the distribution agreement contains an arbitration clause designating a recognised seat — ICC or LCIA awards enforce through exequatur.
The Argentine Legal Framework for Commercial Debt Recovery
Your Argentine counterparty has stopped paying. The invoice is 120 days past due and the exchange rate has moved twice since you issued it. Argentine civil and commercial obligations are governed by the Código Civil y Comercial de la Nación (Law 26.994), in force since 1 August 2015. Article 2560 establishes a general civil and commercial limitation period of five years. Article 2562 sets a shorter two-year period for interest and periodic obligations.
Juicio Ejecutivo: The Creditor’s Fast Track
The juicio ejecutivo (CPCCN Articles 520 to 605) is available where the claim is backed by an executive title: a cheque, a pagaré (promissory note), a letra de cambio, or a notarised debt acknowledgment. The court orders an embargo (attachment) of the debtor’s assets at the outset, before the debtor has been heard.
Latin America: Recovery Jurisdiction Comparison
Structure contracts with USD or EUR denomination clauses and inflation indexation where possible. Argentina is a New York Convention party since 1958 — arbitral awards from qualifying seats enforce through the exequatur procedure.
How does debt collection work in Argentina?
Debt collection in Argentina is governed by the Código Civil y Comercial (Law 26.994) and the CPCCN. Creditors holding executive titles use juicio ejecutivo under CPCCN Arts.520-605, with immediate embargo on debtor assets. General limitation: 5 years (Art.2560), 2 years for periodic claims (Art.2562). Argentina is a New York Convention party — arbitral awards enforce through exequatur.
You know the debt is real. What you need now is someone on the ground in the right jurisdiction who can make it cost the debtor more to ignore it than to pay it. Contact Cosmopolite for a free case assessment. No win, no fee.
