Debt Recovery & Enforcement in Iran

Debt recovery in Iran starts with one question: what evidence of the debt do you hold, and what assets can be reached? PAD International Group assesses your documents, the debtor and the available recovery route before any costs are incurred, then pursues commercial debts and enforces Iranian judgments, cheques, official deeds and arbitral awards against assets in Iran.

Choosing the right recovery route

Iranian law offers faster routes for some debt documents and a full court claim for others. Choosing correctly at the start saves months.

For a detailed guide to bounced cheques, see the Persian page on اجرائیه چک. Foreign judgments and awards are covered in enforcing foreign judgments and arbitral awards in Iran.

Protecting assets early

Debtors sometimes move or transfer assets once they learn of a claim. Iranian procedure allows the creditor to request an interim attachment of the debtor’s property (security for the claim) at the start of proceedings, usually with a deposit or guarantee where the debt is not supported by a negotiable instrument. We assess whether this is available and worth the cost.

Enforcing a judgment in Iran

Once a judgment is final, enforcement follows the Law on Enforcement of Financial Convictions (2015). The debtor must pay or declare assets; the enforcement office can make enquiries with registries and banks and seize identified bank balances, real estate, vehicles, shares and other property. Delay damages for money debts may also be claimed, calculated by reference to the Central Bank’s price index.

How we work

1. Pre-action assessment. We review the evidence of debt, limitation and procedural points, the debtor and known assets.
2. Demand. A formal demand or official notice (ezharnameh) often prompts payment or settlement.
3. Proceedings. We file the cheque enforcement request, registry enforcement or court claim, with interim attachment where appropriate.
4. Enforcement. We trace and seize assets and report progress to you in English.
5. Settlement. At any stage we can negotiate a payment plan backed by enforceable terms.

Example: a supplier owed by an Iranian customer

A Turkish supplier delivered goods to an Iranian buyer and received two cheques that were later returned unpaid. Because the cheques were not conditional and the returns were not due to a stop-payment instruction, the supplier obtained an enforcement order and, after the ten-day period, the buyer’s bank balances were attached. The buyer then agreed a settlement. This example is hypothetical.

Frequently asked questions

Legal reference

Law on Issuing Cheques (as amended 2018), Article 23; Civil Procedure Code of Iran, including Article 522 on delay damages; Law on Enforcement of Financial Convictions (2015); Law on Enforcement of Civil Judgments, Articles 169–179. General information reviewed 30 October 2026. Requirements depend on the documents and the debtor and must be confirmed for each case.