Countries › Paraguay › Guide › 14. Disputes › Debt collection in Paraguay: executive suits on promissory notes, cheques and invoices, attachment and judicial auction

Debt collection in Paraguay: executive suits on promissory notes, cheques and invoices, attachment and judicial auction

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

A creditor holding an executive title (public deed, recognized private document, promissory note, bill of exchange, conformed invoice, dishonoured cheque, unpaid rent) can sue in an executive proceeding that starts with an order to pay and attachment. The debtor has 5 days to raise a closed list of defences, the cause of the debt cannot be examined, and most rulings are unappealable until the judgment ordering sale, after which either side has 60 days to start an ordinary case. Ley 7663/2026 will require the original credit instrument to be deposited with the court once the Supreme Court issues its implementing acordada.

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 for the debtor to raise defences in an executive suit	5 daysCódigo Procesal Civil art. 460, as of 2026-10-28 · in force
Court officer demands payment within	3 daysCódigo Procesal Civil art. 451, as of 2026-10-28 · in force
Cause of the debt examinable in executive suit	No Código Procesal Civil art. 465, as of 2026-10-28 · in force
Time to start an ordinary case after the sale judgment	60 daysCódigo Procesal Civil art. 471, as of 2026-10-28 · in force
Fine for falsely denying a signature	30 % of debtCódigo Procesal Civil art. 446, as of 2026-10-28 · in force
Base reduction at second auction of real estate	25 %Código Procesal Civil art. 486, as of 2026-10-28 · in force
Original credit instrument must be deposited in executive suits	Yes, once the Supreme Court acordada is issued Ley 7663/2026 art. 1, 7, as of 2026-10-28 · pending
Minimum lawyer fee in executive suits without defences	8 %Ley 1376/1988 art. 34, as of 2026-10-28 · 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. Executive titles and preparation. An executive suit lies for a due, liquid sum of money based on a title carrying execution: a public instrument; a private instrument signed by the debtor and recognized in court or with the signature authenticated by a notary in the debtor's presence and registered; a claim for rent of real estate; a confession of debt before a judge; an account approved in preparatory proceedings; a bill of exchange, conformed invoice, promissory note or cheque dishonoured by the bank, protested where required or recognized in court; bills of lading and similar transport documents; and other titles given executive force by law. Documents that are not executive by themselves can be prepared by summoning the debtor to recognize the signature; if the debtor does not appear, refuses or answers evasively, the signature is deemed recognized, and if the debtor denies a signature that experts find authentic, the debtor is fined 30 percent of the debt in favour of the creditor. Preparatory measures lapse if the suit is not filed within 20 days of their completion. The creditor may choose an ordinary proceeding instead.
Cost to do it: Lawyer fees in executive suits: with defences raised, 5 to 20 percent of the amount (Ley 1376 art. 32); without defences, reduced to one third but not below 8 percent (Ley 1376 art. 34).
Example: A distributor holding a PYG 293,415,500 promissory note signed by a retailer files an executive suit directly; with only an unsigned invoice it must first have the debt recognized. / A debtor who falsely denies signing a US$50,000 (PYG 293,415,500) acknowledgment is fined 30 percent, about US$15,000, payable to the creditor (art. 446).Ley Nº 1337/1988, Código Procesal Civil, Art. 439, 440, 443, 444, 445, 446, 447 and 448, 1988-10-20 official text · verified 2026-10-28

2. Order to pay, attachment and defences. The judge checks the title and issues an order to pay and attach for the liquid amount plus interest and costs, with power to enter premises and use police assistance; the court officer demands payment within 3 days and, if unpaid, attaches assets, registered property by registry entry. The debtor is cited to raise defences within 5 days in a single filing with all evidence offered. Admissible defences are only: lack of jurisdiction, lack of standing or capacity, pending litigation, forgery or unfitness of the title, prescription, documented payment, set off of a liquid executive credit, release, extension, novation or settlement, and res judicata; nullity of the execution is allowed on limited grounds. The cause of the obligation cannot be examined. If no defences are raised, the judge issues judgment ordering sale without further steps. Evidence on defences may not exceed 15 days, and judgment follows within 10 days. Rulings are unappealable from preparation to end except the sale judgment, appealable on the record with suspensive effect, and the liquidation order. The debtor pays costs even if it pays on the order to pay. Whatever the outcome, either party may start an ordinary case within 60 days of the final sale judgment.
Cost to do it: Costs of the executive suit fall on the losing party (art. 474); court officer and registry costs for attachment.
Example: A retailer cited on a PYG 293,415,500 note argues the goods were defective: the judge rejects it outright because the cause of the debt cannot be examined (art. 465) and orders sale; the retailer may later sue in ordinary proceedings within 60 days. / On a US$50,000 note, the debtor's whole defence must be filed within 5 days of citation.Ley Nº 1337/1988, Código Procesal Civil, Art. 442, 450, 451, 456, 457, 460, 462, 463, 465, 466, 467, 468, 469, 471 and 472, 1988-10-20 official text · verified 2026-10-28

3. Judicial sale and payment. If cash was attached, the creditor is paid on approval of the liquidation. Movables are auctioned without a base price, cash only, by a public auctioneer after 3 days of notices published 5 days before the sale. For real estate, the base is the tax valuation; notices run 5 consecutive days, 8 days before the sale; buyers pay the auctioneer's commission, costs and a 10 percent deposit at the sale and the balance within 5 days of approval. If there are no bidders, the creditor may ask for a new auction with the base reduced by 25 percent, or adjudication of the property at two thirds of the base. Before the balance is paid, the debtor may free the property by paying capital, interest and costs plus twice the deposit to the buyer. Mortgage and pledge executions follow the same rules, proceeding first against the encumbered asset, with a narrower list of defences.
Cost to do it: Auctioneer commission and auction costs paid by buyers; publication costs advanced by the creditor and recoverable as costs.
Example: A warehouse with a tax valuation of PYG 1,173,662,000 receives no bids: the creditor may seek a second auction at a base of PYG 880,246,500 or adjudication at PYG 782,441,333. / On a US$200,000 tax valuation, a 25 percent reduction sets the second base at US$150,000 and adjudication at about US$133,333.Ley Nº 1337/1988, Código Procesal Civil, Art. 475, 476, 477, 481, 483, 484, 486, 487, 490, 503, 504, 507, 508 and 509, 1988-10-20 official text · verified 2026-10-28

4. Original title deposit under Ley 7663/2026 (pending start). Ley 7663/2026, promulgated and published on 19 June 2026, rewrites Código Procesal Civil art. 158, 159, 444 and 448 and adds art. 501 bis. A creditor suing on a bill of exchange, promissory note, conformed invoice or dishonoured cheque must deposit the original title with the court clerk or be appointed judicial depositary; judgments must state to whom the title is returned, and funds held by the court are not released to the creditor until the original title is available to the paying debtor. The law applies only once the Supreme Court issues its implementing acordada, published in the Gaceta Oficial, which the law required within 120 days.
Cost to do it: No fee in the law; lenders need secure custody of original notes and cheques.
Example: A finance company holding 500 consumer promissory notes must be able to produce each original when it sues once the acordada is in force. / Even on a US$10,000 (PYG 58,683,100) note, funds collected by the court stay blocked until the original is available to the debtor.Ley Nº 7663/2026, régimen de depósito de títulos de crédito originales, Art. 1, 2, 7 and 8, 2026-06-19 official text · verified 2026-10-28 · changed: Ley 7663/2026 (19 June 2026) adds mandatory deposit of original credit instruments in executive suits, effective when the Supreme Court acordada is issued (art. 7 and 8).

Step	Time limit	Article
File after preparatory measures	20 days	447
Officer demands payment	Within 3 days of receiving the order	451
Debtor's defences	5 days	460
Evidence on defences	Up to 15 days	468
Sale judgment	10 days after evidence or answer	467, 469
Ordinary case after sale judgment	60 days	471
Real estate buyer pays balance	5 days after auction approval	490

Executive suit clock (Código Procesal Civil)

Worked example

An agricultural input supplier holds a PYG 293,415,500 (US$50,000) promissory note from a farmer, due 30 September 2026 and unpaid. It files an executive suit; the court officer demands payment and attaches the farmer's harvest receivables. The farmer raises no defence within 5 days, so the judge issues the sale judgment. The supplier's lawyer fee is regulated at no less than 8 percent, PYG 23,473,240 (about US$4,000), payable by the farmer as costs.

Step by step

Take promissory notes, conformed invoices or notarized acknowledgments at the start of the relationship so you hold an executive title.
Check prescription: endorsable and bearer instruments prescribe in 4 years unless special laws say otherwise (Civil Code art. 661 c).
Keep originals in safe custody ahead of Ley 7663/2026.
Search registries for real estate and vehicles to attach by registry entry (art. 456).
If no assets are known, request a general ban on disposal (art. 718).

Common traps

Defences outside art. 462, or not stated clearly, are rejected without a hearing and the sale judgment follows immediately (art. 466).
The debtor pays costs even if it pays at the first demand (art. 457).
No further appeal to the Supreme Court lies in executive proceedings (art. 403).
A creditor who loses the executive suit can still bring an ordinary case within 60 days (art. 471), and the debtor can require the creditor to post a guarantee for that case (art. 473).

Sources

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