What makes a debt legally collectable?

A document that proves it: a contract or purchase order, an invoice, proof of delivery or acceptance from someone with authority, and a statement or an acknowledgment. Where the debt is proven in writing, due and fixed in amount, it can go through the payment-order route, which is faster than an ordinary claim. A debt that rests only on memory and scattered messages has to be rebuilt first.

Can emails and WhatsApp messages prove a debt?

In commercial matters any means of proof is allowed unless the law says otherwise, and compliant electronic documents carry the same weight as paper. But a message is only as strong as what it says: one in which the debtor acknowledges the balance is not the same as one promising to pay with no figure or date. So we turn those messages into a clear acknowledgment at the first opportunity.

The customer disputes part of the invoices. Do we wait for the dispute to end?

No. We separate the disputed part from the admitted part, claim the undisputed amount on its own, then deal with the underlying objection through the documents and the commercial or technical team. Waiting until everything is settled gives the debtor free financing on the whole balance.

When does our right to claim the debt expire?

That depends on the nature of the debt and the parties. Commercial obligations between merchants generally lapse seven years after the due date, merchants' claims for goods supplied to people who do not trade in them after one year, and a cheque holder's claims against the drawer and endorsers after one year. An acknowledgment of the debt or a court claim interrupts limitation, so no debt should be left without one of them just because the relationship continues.

The debtor wants a long schedule. What should we get in return?

A clear acknowledgment of the amount, an upfront payment, fixed dates, security proportionate to the time given, and a clause on what happens when a single instalment is missed, such as the rest falling due. The time the business gives should buy extra protection, not a free delay.

A cheque bounced. What are our options?

Issuing a cheque without sufficient funds is an offence under Article 534 of the Commercial Law, and a settlement with the beneficiary ends the prosecution at any stage, which makes the cheque a strong negotiating tool. But the criminal route does not return the money on its own, so we weigh it against the civil claim, bearing in mind that a cheque payable in Egypt must be presented within six months and the holder's claims lapse after one year.

Which security is actually worth asking for?

Good security is security you can enforce when you need it: a guarantee from a party of known standing, a pledge over movables or receivables registered in the movable collateral registry so that its priority dates from registration, or a bank guarantee on clear terms. Cheques and notes help, but they do not replace checking the solvency of whoever signed them.

What is a payment order, and when do we use it?

A short route for a debt proven in writing, due and fixed in amount: the judge issues an order without full proceedings, after the debtor has been given at least five days' formal notice to pay. The order lapses if not served within three months, and the debtor can object or appeal. It suits well-documented debts, not debts whose existence is disputed.

Can the debtor's assets be frozen before a judgment?

Yes, in cases the law sets out, including where there is a risk of losing the security for the debt, provided the debt is certain and due. The attachment can reach the debtor's movables or funds held by third parties such as banks and customers, with a judge's order where the creditor has no enforceable title, and short deadlines for the validity claim that must be met exactly.

The debtor has entered bankruptcy or preventive composition. Is the debt lost?

Not necessarily, but the rules change. Once a bankruptcy judgment is issued, unsecured creditors can no longer act individually and lodge their claims with the trustee, while secured creditors hold a different position. That is why timing and registered security before default make the biggest difference.

How is the work priced?

Against a defined scope agreed before the work begins, not against time spent. Scope is proposed only after the documents in force have been read.

Are we entitled to interest for late payment?

Late payment of a known sum carries statutory delay interest of five percent in commercial matters and four percent in civil matters, running as a rule from the date of the court claim unless an agreement or commercial custom sets another date. Agreed interest is subject to a legal cap, so clauses are drafted within it.

Which court hears our claim?

An ordinary claim for unpaid invoices generally goes to the ordinary courts. The Economic Courts hear disputes under specific laws, including companies, leasing, factoring, movable collateral and bankruptcy, and within that jurisdiction claims above EGP 10 million start directly before the appellate circuit.

Can we share a debtor's data with a collection firm?

Where the debtor or guarantor is an individual, sharing their personal data needs a lawful basis under the Personal Data Protection Law, with the processor bound by contract. Non-bank finance companies may use only collectors registered with the Financial Regulatory Authority once the extended deadline of 22 January 2027 passes.

MASAR Solutions · Credit protection & recovery

MASAR Recovery™

For businesses that sell on credit: we build credit relationships that stay collectable from the first invoice, and recover what is overdue by the route that protects both the money and the relationship.

Book a business meeting

For: Businesses selling goods or services on credit
We start from: The contract, the statement of account and the last message to the debtor
The first 90 days: Understand the credit cycle, close the gaps, then build a system that repeats

01
Protect the credit

Limits, security and payment terms settled before the first delivery, not after the first late payment.
02
Strengthen the file

Contract, invoices, proof of delivery and an acknowledged balance, in a file that holds up to objection.
03
Choose the right time to act

Knowing when an extension is enough, and when waiting becomes the loss.
04
Focus on recovery

Measuring a file by what is recovered or protected, not by the number of notices and hearings.

A sale is not cash until it is collected

Legal support should not appear only after recovery fails. Its greatest value is helping the business create credit relationships that remain recoverable, and knowing when to protect the customer relationship and when to protect the cash.

Every business defaults in its own way

A supplier's customers do not fall behind the way a tenant does, and a developer does not face what a finance company faces. Pick your business to see where a debt usually starts to drift, and what keeps it collectable.

01 / 06

Manufacturers, distributors & wholesalers

The supplier delivers today and collects months later, and between delivery and payment sits a chain of orders, invoices and cheques.

The problem

A limit on paper

The credit limit is set when the account opens, then every new order exceeds it because sales measure demand, not the balance.
Missing proof of delivery

An invoice with no signed delivery note, or a receipt signed by someone with no authority at the customer, so the dispute starts with whether the goods arrived at all.
Post-dated cheques

Cheques taken as security sit in the safe with no one tracking their dates until the drawer's position changes.

How we deal with it

Credit limits tied to the live balance and checked on every order
A delivery note signed by someone with authority, and a statement confirmed periodically
A register of cheques and bills with presentation and due dates

The clocks running on a debt

Every debt has deadlines running on it whether anyone is watching or not: a notice period for a step, a window to present, and a period after which the right is lost. These are the main ones, drawn on one scale.

Procedural step
Window
Limitation

Procedural step
Demand to pay before a payment order

Runs from: Service of the demand on the debtor

5 days
A payment order cannot be requested before it expires.
Procedural step
Filing the claim to validate an attachment

Runs from: The attachment

8 days
Missing it undoes the attachment.
Procedural step
Debtor's objection to a payment order

Runs from: Service of the order on the debtor

10 days
The debtor can object in this window, or appeal directly.
Procedural step
Serving a payment order

Runs from: Issue of the order

3 months
The order lapses if it is not served in time.
Procedural step
Annulment claim against an arbitral award

Runs from: Notification of the award

90 days
Enforcement cannot be requested until it has passed.
Window
Presenting a cheque for payment

Runs from: The date written on the cheque

6 months
For cheques drawn and payable in Egypt; if the cheque is not presented, the holder's limitation runs from the end of this window.
Limitation
Holder's claims against drawer and endorsers

Runs from: Presentation, or the end of the presentation window

1 year
The claim is time-barred after it.
Limitation
Merchants' claims for goods sold to non-merchants

Runs from: The due date

1 year
The shortest limitation period in credit sales, and the one that surprises those who delay.
Limitation
Periodic payments such as rent

Runs from: Each instalment's due date

5 years
Each instalment lapses separately, so the oldest arrears go first.
Limitation
Commercial obligations between merchants

Runs from: The due date

7 years
Unless the law sets another period. An acknowledgment of the debt or a court claim interrupts limitation.
Limitation
General Civil Code rule

Runs from: The due date

15 years
Where no shorter period applies.

Recovery tools side by side

Each tool has a condition for using it, an effect it delivers and a deadline that will not wait. Pick your goal to see the tools that serve it, and open any tool to read the detail.

What do you want to achieve?

01
Acknowledgment of debt

Proves the debt and its amount, and interrupts limitation.

When to use it
At any stage, by the debtor's signature or written acknowledgment of the balance.

The deadline to watch No deadline

Legal basis
Civil Code
02
Payment order

A judge's order without full proceedings.

When to use it
A debt proven in writing, due and fixed in amount.

The deadline to watch 5 days · 3 months
A demand to pay at least five days before the request, and service of the order within three months.

Legal basis
Civil and Commercial Procedures Law No. 13 of 1968, as amended, Arts. 201–210
03
Precautionary attachment

Stops the debtor dealing with the attached movables.

When to use it
A debt that is certain and due, with a risk of losing its security.

The deadline to watch 8 days
Where the attachment is made by order of the enforcement judge, the attaching creditor must, within the eight days following notification of the attachment to the debtor, file the claim to establish the right and validate the attachment, unless the debt claim has already been filed, subject to the circumstances of the attachment, its basis and its procedure.

Legal basis
Civil and Commercial Procedures Law No. 13 of 1968, as amended, Arts. 316–324
04
Garnishment

Stops the debtor's funds held by banks or customers from reaching it.

When to use it
A debt that is certain and due, with a judge's order where there is no enforceable title.

The deadline to watch 8 days
Where the garnishment is made pursuant to an order issued by the Enforcement Judge, the creditor must, within eight days following notification of the garnishment to the debtor, commence proceedings to establish the debt and validate the garnishment, unless proceedings concerning the underlying debt have already been commenced. The applicable requirements depend on the basis and procedural circumstances of the garnishment.

Legal basis
Civil and Commercial Procedures Law No. 13 of 1968, as amended, Arts. 325–352
05
Cheque

A criminal route that ends with a settlement with the beneficiary at any stage.

When to use it
A cheque that was not covered when presented.

The deadline to watch 6 months · 1 year
A cheque drawn in Egypt and payable in Egypt must be presented for payment within six months. Where the cheque is drawn outside Egypt but payable in Egypt, it must be presented within eight months. Claims by the cheque holder against the drawer, endorsers and other liable parties are subject to a one-year limitation period calculated from the date of presentation for payment or the expiry of the applicable presentation period.

Legal basis
Law 17 of 1999, Arts. 504, 531 & 534
06
Pledge over movables and receivables

Priority by registration date, and faster enforcement than an ordinary claim.

When to use it
A pledge registered in the movable collateral registry.

The deadline to watch 5 days
Where the security agreement grants the creditor the right to sell the secured movable asset following the debtor’s default, enforcement procedures may not commence until five days have elapsed from the date on which the debtor was formally required to perform by registered letter with acknowledgment of receipt. Creditors holding registered security rights over the asset must also be notified, and all procedures prescribed by law and its Executive Regulations must be observed.

Legal basis
Law 115 of 2015
07
Secured settlement

An acknowledgment, an upfront payment and security in exchange for time.

When to use it
A debtor able to pay over time, and a relationship worth keeping.

The deadline to watch As agreed
Set by the agreement, with a defined consequence for any missed instalment.

Legal basis
The contract
08
Ordinary claim

A judgment on the existence and amount of the debt.

When to use it
A disputed debt, or one whose amount is not fixed.

The deadline to watch Before limitation
The applicable limitation period varies according to the source of the claim, the legal capacity of the parties and the nature of the transaction. This includes a seven-year limitation period for claims arising from commercial obligations between traders, unless a shorter period is prescribed by law. Special limitation periods applicable to negotiable instruments, specific contracts and particular rights must also be considered.

Legal basis
Civil Code & Law 17 of 1999
09
Arbitration

An award enforced by an enforcement order, including foreign awards under the New York Convention.

When to use it
An arbitration clause or agreement in the contract.

The deadline to watch 90 days
Enforcement cannot be requested before the ninety-day annulment period passes.

Legal basis
Law 27 of 1994
10
Claim in bankruptcy

The claim is lodged with the trustee, and unsecured creditors can no longer act individually.

When to use it
A judgment declaring the debtor bankrupt.

The deadline to watch Per the proceedings

Legal basis
Law 11 of 2018

Practical scenarios

01
A strong customer pays late for the first time

We do not ignore the delay because of history or immediately escalate. We assess cause, exposure, new orders, and whether a short conditional extension, reduced limit, or additional protection is appropriate.
Objective: Preserve a valuable relationship without allowing past trust to create new risk.
02
A customer requests new supply while already overdue

New sales may appear to help recovery but can increase the loss. We connect any additional supply to a payment plan, exposure limit, security, and clear conditions.
Objective: Avoid doubling the problem while trying to solve it.
03
The debtor disputes part of the invoices

We isolate the genuinely disputed amount from the admitted or undisputed balance and address the underlying issue with the relevant commercial or technical team.
Objective: Recover what should not be frozen by a limited dispute.
04
The debtor requests a long restructuring

We assess more than the number of months: upfront payment, acknowledgment, realistic capacity, security, payment dates, and the consequence of missing an installment.
Objective: Exchange time for additional protection rather than giving a free extension.
05
The debtor offers a discounted lump-sum settlement

A discount may be rational where recovery prospects are weak and poor where documents and security are strong. We compare cash now with the time, cost, and probability of alternative recovery.
Objective: Make a conscious legal and economic decision rather than accepting a discount simply for liquidity.
06
A judgment is obtained but the debtor still does not pay

This exposes the difference between winning and recovering. We focus on lawful enforcement routes and available assets or rights rather than treating judgment as the end of the file.
Objective: Convert the legal instrument into actual recovery where possible.

How we handle a recovery matter

01
Establish the debt

Contracts, purchase orders, invoices, delivery or performance evidence, statements, correspondence, and security.
02
Identify the cause

Financial pressure, operational delay, genuine dispute, or deliberate delay.
03
Define the business objective

Preserve the customer, stop exposure, recover quickly, maximize recovery, or strengthen security.
04
Assess recoverability

Documents, security, debtor position, timing, and lawfully available information.
05
Build the options

Demand, negotiation, secured settlement, stop-supply decision, or legal escalation.
06
Set the escalation point

Define when negotiation ends and what event triggers the next step.
07
Execute & review

Measure progress by money recovered, exposure protected, or the matter resolved—not by the number of letters sent.

The first 90 days

01
Days 1-30
Understand the credit cycle
- How customers enter the credit process.
- Who approves credit.
- Required documentation.
- How overdue accounts are followed.
- When matters move to legal.
- Highest-risk existing files.
02
Days 31-60
Close the gaps
- Improve payment and security terms.
- Organize recovery documentation.
- Classify overdue accounts by risk.
- Define negotiation and escalation routes.
- Start priority recovery matters.
03
Days 61-90
Build a repeatable system
- Early-warning triggers.
- Clear legal handover point.
- Rules for restructuring and settlement.
- Unified follow-up between sales, finance, credit, and legal.
- Periodic reporting on exposure, recovery, and required decisions.

How we support the business

01
Legal credit framework

Help define when additional documentation, security, approval, review, or suspension of credit should be considered.
02
Contracts & payment terms

Draft and review credit sale terms, due dates, disputes, security, stop-supply rights, and default provisions.
03
Early warning

Build practical triggers connecting late payment, disputes, limit breaches, and behavioral changes to management decisions.
04
Demand & recovery

Run a structured, documented recovery process while preserving evidence, deadlines, and legal rights.
05
Debt restructuring & settlement

Document acknowledged amounts, payment schedules, security, and consequences of default rather than relying on informal extensions.
06
Litigation

Select the appropriate legal route based on documents, facts, and applicable law, with enforcement considered from the outset.
07
Enforcement & recovery

Treat enforcement as part of the recovery strategy, not an afterthought following years of proceedings.
08
Credit insurance recovery support

Support recovery matters involving insured trade credit within the relevant policy, mandate, and relationship between insurer, insured, and debtor.

How we work with you

01
Ongoing legal partnership
- Review credit terms and contracts.
- Legal review of higher-exposure customers or transactions.
- Prioritized follow-up of overdue accounts.
- Periodic coordination with credit, finance, and sales where needed.
- Management of settlements and escalation files.
- Litigation, enforcement, and recovery follow-up.
- Update documentation and security templates.
- Management reporting focused on exposure, recovery, risk, and required decisions.
02
Who we work with
- Businesses selling goods or services on credit.
- Manufacturers, distributors, and wholesalers.
- B2B service companies.
- Businesses managing recurring receivables or customer portfolios.
- Credit, collection, and finance teams.
- Credit insurers and organizations managing commercial recovery files.
- Investors or businesses requiring legal assessment of receivables portfolios.
03
The limits of our role
- We do not guarantee recovery merely because a judgment or document exists; recoverability depends on the debtor, assets, security, facts, and applicable law.
- We do not obtain unlawful information or use unlawful pressure against debtors.
- We do not turn every delay into litigation, and we do not allow negotiation to continue indefinitely without a decision point.
- We do not replace management's commercial credit decision; we provide the legal framework, risk assessment, and available options.
- For credit insurance matters, scope depends on the policy, mandate, and relationship between the relevant parties.

Situations from recovery files

These scenarios illustrate our methodology and do not represent disclosed client engagements.

Questions from people who run credit and collections

Let's discuss your credit and recovery cycle

Send the statement of account, the contract or the last message to the debtor, and tell us what you want: to keep the customer, stop the exposure or recover the amount. We read the document first, then propose the route and the scope of work.

First District, Fifth Neighbourhood, Villa 9, main entrance, Basement 1 Sheikh Zayed City, Giza, Egypt [email protected] +20 100 882 2749 LinkedIn WhatsApp

MASAR Recovery™

A sale is not cash until it is collected

Every business defaults in its own way

The problem

How we deal with it

The problem

How we deal with it

The problem

How we deal with it

The problem

How we deal with it

The problem

How we deal with it

The problem

How we deal with it

The clocks running on a debt

Demand to pay before a payment order

Filing the claim to validate an attachment

Debtor's objection to a payment order

Serving a payment order

Annulment claim against an arbitral award

Presenting a cheque for payment

Holder's claims against drawer and endorsers

Merchants' claims for goods sold to non-merchants

Periodic payments such as rent

Commercial obligations between merchants

General Civil Code rule

Where should your debt start?

Is the debt proven by a written document?

Recovery tools side by side

Acknowledgment of debt

Payment order

Precautionary attachment

Garnishment

Cheque

Pledge over movables and receivables

Secured settlement

Ordinary claim

Arbitration

Claim in bankruptcy

What management sees

What the file must prove

Practical scenarios

A strong customer pays late for the first time

A customer requests new supply while already overdue

The debtor disputes part of the invoices

The debtor requests a long restructuring

The debtor offers a discounted lump-sum settlement

A judgment is obtained but the debtor still does not pay

How we handle a recovery matter

Establish the debt

Identify the cause

Define the business objective

Assess recoverability

Build the options

Set the escalation point

Execute & review

The first 90 days

Days 1-30

Days 31-60

Days 61-90

How we support the business

Legal credit framework

Contracts & payment terms

Early warning

Demand & recovery

Debt restructuring & settlement

Litigation

Enforcement & recovery

Credit insurance recovery support

How we work with you

Ongoing legal partnership

Who we work with

The limits of our role

Situations from recovery files

Unpaid enterprise account, live service

Retention held across completed projects

Tenant payment default

Instalments stop after a delivery date moves

Security that no longer matches the borrower