Short answer
A past-due pagaré can be enforced through an executory commercial lawsuit (juicio ejecutivo mercantil), in which the court can order the attachment of the debtor's assets from the very beginning (Commerce Code arts. 1391-1392). As a rule, the action prescribes three years after maturity (LGTOC art. 165). Keep the original: without it, enforcement becomes much harder.
What a pagaré must contain
Article 170 LGTOC requires: the word "pagaré" in the text; an unconditional promise to pay a sum of money; the name of the payee; the date and place of payment; the date and place of signing; and the signature of the maker (or of someone signing at their request). Some missing details, such as the place of payment, are supplied by law; a missing signature or promise to pay is fatal.
Deadlines the credit team must track
| Item | Deadline | Source |
|---|---|---|
| Action on the note against maker and avales | 3 years from maturity | LGTOC art. 165 |
| Presentation of a note payable at sight | 6 months from its date | LGTOC arts. 128, 171, 174 |
| Interrupting the limitation period | Filing the lawsuit, written acknowledgment or renewal of the document | Commerce Code art. 1041 |
| Legal interest if none was agreed | 6% per year | Commerce Code art. 362 |
Default interest agreed in the note can be claimed, but under Supreme Court case law 1a./J. 46/2014 (10a.) judges must reduce usurious interest on their own motion.
How the executory lawsuit works
When the debt is documented in an instrument the law treats as executory, such as a pagaré (Commerce Code art. 1391), the court, on admitting the claim, orders the debtor to pay and, if payment is not made on the spot, the attachment of enough assets to cover the debt, costs and expenses (art. 1392). The debtor can then raise the defenses allowed by LGTOC art. 8 (for example, payment or forged signature). If the creditor wins, attached assets can be auctioned.
| Document | Usual route | Advantage |
|---|---|---|
| Signed original pagaré | Executory lawsuit | Attachment from the outset |
| Bounced check | Executory lawsuit | Statutory compensation for the returned check |
| Invoices and proof of delivery | Oral commercial lawsuit | Available regardless of amount |
Documents and common mistakes
- Keep the original note, without new marks or annotations.
- Gather the debtor's and aval's details, invoices or purchase orders, records of partial payments and emails acknowledging the debt.
- Identify the debtor's assets before filing: bank accounts, real estate, vehicles, receivables.
- Do not hand the original to the debtor "to negotiate", and do not fill blanks differently from what was agreed.
- Do not wait until the last months of the three-year period.
Frequently asked questions
Can I enforce a pagaré if I lost the original?
It is difficult. A pagaré is enforced with the original. There is a cancellation and replacement procedure for lost instruments, but it takes time; get advice before taking any step.
Can I also sue the guarantor (aval)?
Yes. The aval is liable on the same terms as the maker (LGTOC arts. 109-116), and both can be sued in the same proceeding.
Does a pagaré need to be notarized?
No. It is enough that it meets the requirements of article 170 of the General Law of Negotiable Instruments and Credit Operations (LGTOC) and bears the debtor's signature.
What if the note has no maturity date?
It is treated as payable at sight (art. 171 LGTOC) and must be presented for payment within six months of its date (arts. 128 and 174).
What if the note is already time-barred?
The action on the note (acción cambiaria) is no longer available, but an action based on the underlying sale (acción causal) may remain, with other deadlines.
Related: securing trade credit · statute of limitations · all guides · versión en español