Atlas Claims InsightsPublished 7 October 2026 · Reviewed 14 October 2026 · 5 min readKey takeaways
- The contract’s governing law and dispute resolution clause define where a claim would be decided.
- Check that the debtor is trading and has assets before spending money.
- Negotiated settlements are usually faster and more certain than foreign litigation.
- A local-language demand through an independent agent often has more effect than one from abroad.
When a customer abroad stops paying, the questions multiply: which law applies, which courts have jurisdiction, whether a judgment could be enforced, and whether the customer even has assets worth pursuing. Answering them early decides the right strategy.
Start with the contract
The governing law and dispute resolution clauses tell you where a claim would ultimately be decided: the courts of a particular country, or arbitration. They also shape your leverage in negotiation.
Check the counterparty
Before spending money, establish whether the debtor is trading, solvent and has assets. A claim against a company with nothing to pay it is rarely worth litigating, but it may still be worth negotiating.
Why negotiation usually comes first
- Court proceedings abroad can be slow and costly, and require local lawyers.
- A judgment from one country is not automatically enforceable in another.
- An arbitration award may be easier to enforce internationally, but still takes time.
- A negotiated settlement, ideally with security, often recovers more, sooner.
The role of local agents
A demand delivered locally, in the debtor's language and business culture, often has more effect than one from abroad. Independent local agents or counsel can also verify the debtor's position on the ground.
Interest and costs
Whether you can claim interest and recovery costs depends on the contract and the governing law. For UK-law contracts, the Late Payment Act may apply; elsewhere, local rules decide.
Quick answers
How do I recover a debt from a company abroad?
Check the contract’s governing law and dispute clause, verify the debtor can pay, then negotiate, ideally with a local-language demand, before considering arbitration or foreign courts.
Is a UK judgment enforceable overseas?
Only in some countries, under treaties or local rules. Arbitration awards are generally easier to enforce internationally under the New York Convention.
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This guide is general information about the law of England and Wales as at October 2026. It is not legal advice and may not cover your situation. Atlas Claims is not a law firm; for advice on your legal rights or on litigation, consult a qualified solicitor.
