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Civil Procedure Law · EN

Debt Collection in Panama: The Executive Process 2026.

How to collect a debt through the courts in Panama via the executive process: what an enforceable title is, how the process works under the new Civil Procedure Code (Law 402 of 2023), attachment of assets and auction.

Published in the source: Last date stated:

When someone owes you money and does not pay, the executive process is the fast track to collect it — provided your claim is documented in an instrument with enforcement power. This guide explains how it works in Panama in 2026, now under the new Civil Procedure Code.

Important note: the new Civil Procedure Code (Law 402 of 2023) has been in force since October 11, 2025. Cases started before that date continue under the former Judicial Code. This guide describes the current framework; confirm your case with a lawyer.

The key: the enforceable title

Not every debt is collected by the executive route: you need an enforceable title, a document the law recognizes as sufficient proof of a clear, liquid and due obligation. These usually include:

  • A promissory note, check or bill of exchange.
  • A public deed or a contract acknowledging the debt.
  • A mortgage or pledge.
  • A final court judgment.

If your claim is in one of these, you can go straight to enforcement without a long trial to "prove" the debt exists.

How the process works

  1. Executive claim. Filed together with the title, seeking payment and, usually, the attachment of the debtor's assets to secure collection.
  2. Payment order and measures. The judge orders the debtor to pay and may order attachment of assets, accounts or wages.
  3. Defenses. The debtor may oppose by raising defenses (payment, prescription, lack of title merit). Under the new Code, defenses are resolved at a hearing, within the oral model introduced by the reform.
  4. Auction. If the debt is not paid and no defenses succeed, the attached assets are auctioned and the proceeds pay the creditor.

What changed with the new Code

The Civil Procedure Code brought a more oral and concentrated model: disputes are aired in hearings, with a more active judge and an electronic file, aiming to shorten proceedings. In real-estate auctions, for example, appraisal is mandatory only where the property has no assigned cadastral value.

The debtor's side too

If you are being sued, not all is lost: reviewing the merit of the title, the prescription, possible unrecorded payments or procedural defects can change the outcome or open a negotiation. Early, well-argued defense makes the difference.

Related: inheritance and successions in Panama.

Legal basis: Civil Procedure Code (Law 402 of 2023, in force since October 11, 2025). Informational content, not legal advice.

Steps declared in Iurispa (4)

Historical sequence from the source; not current legal instructions.

  1. File the executive claim

    The claim is filed together with the enforceable title, seeking payment and usually the attachment of the debtor's assets.

  2. Payment order and precautionary measures

    The judge orders the debtor to pay and may order attachment of assets, bank accounts or wages.

  3. Defenses

    The debtor may oppose by raising defenses such as payment, prescription or lack of title merit. Under Law 402 of 2023 these are resolved at a hearing.

  4. Auction

    If the debt is not paid and no defense succeeds, the attached assets are auctioned and the proceeds pay the creditor.