April 15, 2026
When a customer or counterparty refuses to pay, the legal toolkit available to creditors is broader than many businesses realise.
Bad debt is part of doing business, but Iraq offers several effective recovery routes when handled correctly.
Pre-litigation steps
- Send a formal written demand referencing the underlying contract or invoices.
- Attempt direct negotiation — settlement at a discount can beat years of court time.
- Verify the debtor's solvency before investing in litigation.
Litigation routes
- Order to pay — a fast-track procedure suitable for liquid, undisputed debts evidenced by clear documents.
- Ordinary civil claim — used when liability or quantum is disputed.
- Commercial court action — when the underlying transaction is commercial in nature.
- Bounced cheque proceedings — bring both criminal and civil dimensions, depending on the circumstances.
Enforcement
Winning a judgment is half the battle. Enforcement options include:
- Attachment of bank accounts.
- Seizure and auction of movable assets.
- Lien against real estate.
- Garnishment of receivables.
Cross-border debts
Foreign judgments and arbitral awards can be enforced subject to specific procedures. Documentation must be properly legalised; we frequently assist with this.
Time matters
Claims have statutory time limits — letting them expire can mean losing the right to recover entirely. Bring the file to a lawyer the first time payment is missed, not the tenth.
We handle debt recovery files for banks, contractors, suppliers, and individual creditors. Fees are tailored to the size of the debt and the complexity of enforcement.