Recovering an unpaid invoice in Colombia: enforcement proceedings

To recover an unpaid invoice, you can initiate court proceedings known in Colombia as a proceso ejecutivo, or enforcement proceedings. This procedure allows enforcement of obligations set out in documents originating from the debtor or their predecessor in title, where those obligations are express, clear and due, and therefore constitute full evidence against them. During the proceedings, the court issues a payment order, orders interim measures against the debtor and, if payment is not made, orders the sale of assets at auction to satisfy the debt.

Editorial note: the Spanish original identifies Article 774 as part of the Tax Statute. The reference is to Article 774 of the Commercial Code, as amended by Law 1231 of 2008. The Spanish original has not been changed.

For an invoice to constitute an enforceable negotiable instrument, it must satisfy all the requirements of Article 774 of the Commercial Code, complemented by Article 621 of the Commercial Code and Article 617 of the Tax Statute. First, it must state the right it embodies and bear the issuer’s signature. It must include the seller’s and buyer’s identification and tax identification numbers (NIT), sequential numbering, issue date, description of the goods or services and total value. It must also state a due date; if omitted, payment is presumed due thirty (30) days after issue. It is also important to include the date the invoice was received and a record on the original of the payment status and terms.

Enforceability against the obligor requires their signature or acceptance, whether express or implied. For electronic invoices, validation, acknowledgement of receipt of the invoice, receipt of the goods or services and acceptance within the statutory time limits are recorded as electronic events that replace a handwritten signature and establish enforceability. Under the electronic system, implied acceptance occurs if no objection is made within three (3) business days of receipt of the goods or services.

If an essential requirement affecting the invoice’s status as a negotiable instrument is missing, the underlying transaction remains valid, but an action based on the instrument is unavailable: recovery must proceed through declaratory proceedings rather than enforcement proceedings.

As a general rule, attempting out-of-court conciliation is not a prerequisite to filing civil enforcement proceedings. You may file the claim with the invoice and relevant evidence, requesting a payment order and, where appropriate, interim measures. If the judge finds sufficient grounds, payment is ordered. For a monetary obligation, the debtor is given five (5) days from service to pay, including interest. If payment is not made and the defences raised do not succeed, assets are attached and sold at auction until principal, interest and costs are covered.