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Commercial litigation in Paraguay: ordinary proceedings, deadlines, appeals, interim measures and lawyer fees

Argentina. For full detail on Argentina, go to The Argentine Thread.

Last verified: 2026-10-28 · Status: Stable

Commercial cases go to the civil and commercial courts under the 1988 Código Procesal Civil: a written claim, 18 days to answer, an evidence period of up to 40 days, and judgment due within 40 days for a judge or 60 days for a court of appeal. Appeals must be filed within 5 days of the judgment and grounded within 18 days; cases lapse after 6 months without activity, and the loser pays the winner's costs under a statutory fee scale of 5 to 20 percent of the amount. Interim attachment, general bans on disposal, lis pendens notes and receivership are available with counter security, but pre suit measures lapse if the claim is not filed within 10 days.

USD figures use PYG 5,868.31 per US dollar, the Banco Central del Paraguay reference quotation published for Wednesday 28 October 2026. Conversions are for orientation only.

Key facts

Time to answer a claim in ordinary proceedings	18 daysCódigo Procesal Civil art. 222, 234, as of 2026-10-28 · in force
Maximum ordinary evidence period	40 daysCódigo Procesal Civil art. 253, as of 2026-10-28 · in force
Deadline for a first instance judgment after the call for judgment	40 daysCódigo Procesal Civil art. 162, as of 2026-10-28 · in force
Time to appeal a final judgment	5 daysCódigo Procesal Civil art. 396, as of 2026-10-28 · in force
Time to file grounds of appeal	18 daysCódigo Procesal Civil art. 424, as of 2026-10-28 · in force
Case lapses for inactivity (caducidad de instancia)	6 monthsCódigo Procesal Civil art. 172, as of 2026-10-28 · in force
Loser pays the winner's costs	Yes, unless the judge exempts with reasons Código Procesal Civil art. 192, 193, as of 2026-10-28 · in force
Statutory first instance lawyer fee range	5 to 20 %Ley 1376/1988 art. 32, as of 2026-10-28 · in force
Days to sue after a pre suit interim measure is executed	10 daysCódigo Procesal Civil art. 700, as of 2026-10-28 · in force
Justicia Letrada amount band	60 to 300 daily minimum wages jornalesCódigo Procesal Civil art. 685, as of 2026-10-28 · in force
Daily minimum wage (jornal) for unspecified activities	117077 PYGDecreto 6225/2026 as applied in Res. DNM 478/2026 fee table, as of 2026-07-01 · in force
BCP reference rate used for conversions	5868.31 PYG per USDBCP planilla 28 October 2026, as of 2026-10-28 · in force

The rule

1. Ordinary proceedings and timetable. The claim must be written and state the parties, the object, facts, law and a precise request, including the amount. The defendant is summoned to answer within 18 days and must admit or deny each fact and document and bring any counterclaim in the answer, or lose it in that case. If facts are admitted the case is decided as a pure question of law; otherwise the judge opens an evidence period fixed by the court of no more than 40 days, with evidence offered in the first 10 days, and judges assess evidence under sound criticism. Procedural time limits are peremptory, run from notification and exclude non working days, and filings are accepted until 9:00 on the next working day after expiry. Judgments must be issued within 40 days (judge) or 60 days (court) after the call for judgment becomes final, interlocutory rulings within 10 or 15 days. A party may obtain early evidence before suing where it risks being lost.
Cost to do it: Counsel is regulated by the court at 5 to 20 percent of the amount in dispute absent a written fee agreement (Ley 1376/1988 art. 32).
Example: A claim for PYG 293,415,500 in unpaid services: the defendant has 18 days from service to answer; evidence is offered in the first 10 days of a period of at most 40 days. / On a US$50,000 claim the statutory timetable alone, without delays, runs several months; real durations depend on court workload.Ley Nº 1337/1988, Código Procesal Civil, Art. 145, 147, 150, 162, 215, 222, 234, 235, 237, 241, 243, 253, 269 and 270, 1988-10-20 official text · verified 2026-10-28

2. Appeals and review. An appeal lies against final judgments, rulings on incidents and decisions causing irreparable harm, filed within 5 days for final judgments and 3 days for other rulings, and is granted with suspensive effect unless the law says otherwise. The appellant must file a reasoned statement of grievances within 18 days of the file reaching the Court of Appeal, or the judgment becomes final for it; the respondent answers in the same period. The court decides by absolute majority and cannot rule on matters not raised in first instance. A further appeal to the Supreme Court lies only against a Court of Appeal judgment that reverses or modifies the first instance judgment, and not in executive or possessory proceedings. A recurso de nulidad for breach of procedural forms is implicit in the appeal. If a ruling is overdue, a party may complain to the superior court, which can order the judge to decide within 10 days.
Cost to do it: Each appeal instance adds 25 to 35 percent of the first instance fee, and the maximum applies if the appellant obtains full reversal (Ley 1376/1988 art. 33).
Example: If the first instance fee is regulated at PYG 14,670,775 (5 percent of PYG 293,415,500), each appeal instance adds PYG 3,667,694 to PYG 5,134,771. / On a US$50,000 claim, a first instance fee of US$2,500 becomes US$3,125 to US$3,375 with one appeal instance.Ley Nº 1337/1988, Código Procesal Civil, Art. 395, 396, 398, 403, 404, 405, 412, 415, 419, 420, 421, 424 and 425, 1988-10-20 official text · verified 2026-10-28

3. Interim measures. Measures may be sought before or after the claim. The applicant must show a prima facie right, danger in delay and give counter security graded by the judge, except the State, municipalities, solvent persons recognized by law and litigants with legal aid. Measures are executed before the other side is notified, which happens within 3 days; orders granting them can be appealed without suspensive effect. Pre suit attachment is available to creditors holding a public or private document attributed to the debtor, among other cases; if the claim is not filed within 10 days of execution, the measure lapses and the applicant pays costs and damages. Registered measures lapse after 5 years unless re registered. Other measures: general ban on disposing of or encumbering assets where no assets are known, seizure, lis pendens note on registered property, prohibition to innovate or contract, and intervention or judicial administration of a business. The first attaching creditor is paid in full before later attaching creditors, except in insolvency.
Cost to do it: Counter security set by the judge; counsel fees for interim measures are one third of the fee on the amount secured, never below 4 jornales (Ley 1376/1988 art. 36), that is PYG 468,308 at the daily wage of PYG 117,077 in force since 1 July 2026.
Example: A supplier owed PYG 293,415,500 under a signed acknowledgment of debt obtains a pre suit attachment of the debtor's bank accounts and must sue within 10 days. / Securing US$50,000 (PYG 293,415,500) with an attachment entitles the creditor's lawyer to a regulated fee of one third of the scale fee on that amount, with a floor of about US$80.Ley Nº 1337/1988, Código Procesal Civil, Art. 691, 693, 694, 700, 701, 704, 705, 707, 714, 718, 721, 723, 725, 727 and 728, 1988-10-20 official text · verified 2026-10-28

4. Costs, fees and abandonment. The losing party pays all the winner's costs even if not requested, unless the judge exempts it with stated reasons. Absent a written agreement, lawyer fees follow Ley 1376/1988: 5 to 20 percent of the value of the case in first instance for proceedings without a specific rate, with lower percentages for larger amounts, judged on the amount, quality of work, complexity and benefit obtained; agreements for fees below the scale and advance waivers are void. The losing side's lawyer is regulated at 50 percent of the winner's lawyer and a procurator at half of the sponsoring lawyer. A case lapses if no step is taken for 6 months, counted from the last step and running through non working days, and the lapse cannot be cured afterwards.
Cost to do it: First instance fee of 5 to 20 percent of the amount, recoverable from the loser.
Example: On a PYG 293,415,500 claim, the winner's first instance lawyer fee is regulated between PYG 14,670,775 and PYG 58,683,100. / On a US$50,000 claim, that is US$2,500 to US$10,000, borne by the losing party; the loser's own lawyer is regulated at half the winner's fee.Ley Nº 1337/1988, Código Procesal Civil; Ley Nº 1376/1988, Arancel de Honorarios de Abogados y Procuradores, CPC art. 172, 173, 174, 192 and 193; Ley 1376 art. 1, 21, 25 and 32, 1988-12-20 official text · verified 2026-10-28

5. Small claims and summary proceedings. Justicia Letrada en lo Civil y Comercial courts hear civil and commercial claims worth between 60 and 300 minimum daily wages for unspecified activities in the Capital, an amount the Supreme Court may change by acordada, with a 6 day answer period, documents filed with claim and answer, one evidence hearing where the judge first attempts conciliation, and appeal judgments within 8 days. Matters referred to summary proceedings have a 9 day answer period, evidence of up to 20 days and judgment within 20 or 30 days.
Cost to do it: At the daily wage of PYG 117,077 (Decreto 6225/2026, applied from 1 July 2026), the band is PYG 7,024,620 to PYG 35,123,100.
Example: A claim for PYG 20,000,000 for unpaid rent of equipment falls in the Justicia Letrada band, unless the Supreme Court has updated it. / In USD the statutory band is about US$1,197 to US$5,985.Ley Nº 1337/1988, Código Procesal Civil, Art. 683, 684, 685, 686 and 690, 1988-10-20 official text · verified 2026-10-28

Step	Time limit	Article
Answer and counterclaim	18 days	222, 234, 237
Evidence period	Up to 40 days; offer within first 10	253
First instance judgment	40 days (judge)	162
Appeal	5 days (judgment), 3 days (other rulings)	396
Grounds of appeal and answer	18 days each	424
Court of Appeal judgment	60 days	162
Lapse for inactivity	6 months	172

Ordinary civil and commercial case, statutory clock (Código Procesal Civil)

Worked example

A Paraguayan logistics company sues a client for PYG 293,415,500 (US$50,000). It first obtains a pre suit attachment on the client's receivables and files the claim within 10 days (art. 700). The client answers in 18 days; evidence runs 40 days; judgment orders payment with costs. The court regulates the winner's lawyer at, say, 10 percent, PYG 29,341,550 (US$5,000), and the client's own lawyer at half that (Ley 1376 art. 25).

Step by step

Check whether the contract has an arbitration clause; if so, use it, since a court filing waives arbitration for the matters claimed (Ley 7561/2025 art. 12).
Collect documents: they must be filed with the claim in summary and small claims proceedings.
Consider a pre suit attachment or general ban on disposal and diary the 10 day filing deadline.
Sign a written fee agreement with counsel at or above the statutory scale.
Keep the case moving: a 6 month gap ends it.

Common traps

Counterclaims not brought in the answer cannot be raised later in the same case (art. 237).
The 6 month lapse period runs through holidays (art. 173) and cannot be cured (art. 174).
A foreign forum clause does not oust Paraguayan courts (art. 3).
The BACN copy of the Código Procesal Civil is the original 1988 text; amendments such as Ley 7663/2026 on executive suits are not shown, so check the article list before relying on a provision.
The Justicia Letrada band may have been updated by Supreme Court acordada; no acordada was verified for this page.

Sources

← Investment arbitration and treaty protection in Paraguay: ICSID, bilateral investment treaties and contract clauses with the stateDebt collection in Paraguay: executive suits on promissory notes, cheques and invoices, attachment and judicial auction →

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