Debt Collection in Belize

The debt collection process in Belize begins with an assessment of the debtor’s solvency, business history, documentary evidence of the debt, current court cases and enforcement proceedings, and the possibility of challenging the debt. This assessment determines the strategy that will be used on behalf of the client during the collection process.

If the debtor does not have current court cases or outstanding court decisions on debt collection, and he is actively engaged in commercial activities, then it is advisable to use the stage of out-of-court debt collection.

This stage involves active negotiations with the debtor to reach an agreement to pay the creditor’s claims or other possible settlement options (for example, return of goods, transfer of debt to a third party, exchange of services or goods).

Interaction with the debtor begins immediately after sending the notification by mail, email, telephone or instant messengers. This process involves intensive communication with the debtor in order to apply constant pressure. The main task is to establish contact with key decision makers to achieve speedy debt repayment.

The average time for informal out-of-court collection is up to 60 days (except in cases where an installment plan for debt repayment has been agreed upon). If this stage does not bring the expected results, or after an initial analysis it becomes clear that it is not applicable, you should proceed to recovery through the court.

Before initiating legal action, you should pay attention to the statute of limitations. The limitation period is 6 years. The limitation period is interrupted if the debtor acknowledges the debt, for example by written acknowledgment or partial payment of the debt or interest. After the interruption, the statute of limitations begins to count again.

Belize law provides for judicial collection of debt in ordinary court proceedings and in summary proceedings.

The courts of first instance are the District and Supreme Courts. District courts have the authority to grant summary judgment in debt collection cases up to $5,000. Cases in which the amount of the claim is greater are subject to consideration in the Supreme Courts in the usual manner.

Summary judicial procedure in the District Court is carried out by filing a statement of claim with the clerk of the court, after which the clerk issues a summons to summon the defendant, which must be served on the defendant along with the claim at least three days before the hearing. Unless otherwise directed by the court, all objections by the defendant must be oral and may be made at any stage of the proceedings before a decision is rendered.

If on the day of the hearing the defendant fails to appear, or fails to provide sufficient excuse for his absence, or fails to answer a summons, the Magistrate may, upon proper proof of service of the summons, continue the hearing and trial of the case without the presence of the defendant.

If on the day of the hearing both parties appeared in court, and if the defendant does not admit the claim, the magistrate must read the statement of claim to the defendant so that he can give his answer or objection to it, after which the magistrate continues the hearing: hears the plaintiff, interrogates witnesses if they have been called, evaluates the evidence presented and makes a decision without further debate or formal determination of the issue in dispute.

The normal process in the Supreme Court is to serve the claim on the defendant and provide proof of such service to the Supreme Court. After such actions are taken, the defendant has 28 days to appear in court and object to the stated requirements if he does not agree with them. In case of failure to appear, the case will be considered in absentia. In case of appearance, the court schedules a hearing during which it evaluates the positions of the parties and the evidence presented. If the court considers that the plaintiff or defendant has no real prospects for the outcome of the case, then the case may be considered in a simplified manner. After the court is sufficiently aware of the circumstances of the case and the positions of the parties, it holds closing arguments and then closes the meeting and makes a decision.

The Supreme Court also acts as an appellate authority to hear complaints against the final decisions of the District Courts. The decision of the district court can be appealed within 28 days from the date of notification of the contested decision.

If a plaintiff or defendant wishes to appeal a Supreme Court decision to the Court of Appeal, he must serve a notice of appeal or notice of his application for leave to appeal within 21 days of the date on which the Supreme Court decision was signed. As a result of consideration of the complaint, the Court of Appeal makes a decision, which comes into force from the moment of its announcement. In cases where the decision of the Court of Appeal raises important issues of law and the amount of claims exceeds $18,250, such a decision can be appealed to the Caribbean Court.

After the court decision comes into force, the creditor should obtain a writ of execution and initiate the enforcement procedure. The final court decision can be submitted for execution within 12 years from the date of entry into force. As part of the enforcement of a court decision, the creditor’s claims can be satisfied by seizing and writing off funds from the debtor’s accounts; seizure of movable and immovable property of the debtor with their subsequent sale; arrest and confiscation of securities.

An alternative option for influencing the debtor is to use the provisions of the Debtors Law, which gives the right to the judicial authority, on certain grounds, to sentence the debtor to imprisonment for a term of up to six weeks or until the amount due is paid.

If the debtor has signs of insolvency, the creditor should consider the option of bankruptcy of the debtor. The legislation provides for a number of characteristic signs of insolvency, among which we should highlight cases when the debtor fraudulently transfers his assets; leaves the territory of Belize; if the debtor notifies any of his creditors that he has suspended or intends to suspend the payment of his debts; if the creditor initiated the enforcement of a final judgment against the debtor for any amount of debt, and the debtor did not comply with the requirements of the executor within 15 days. At this stage, if the court finds that the debtor committed actions or transactions with the aim of deceiving creditors in order to avoid paying the debt, they may be declared invalid. As a result of the cancellation of such transactions, it is possible to return back to the debtor what he lost from such transactions and thereby increase the liquidation estate to satisfy the claims of creditors and cover the costs of implementing the bankruptcy procedure.

If you have any questions or need support with international debt collection in Belize, our company is ready to provide our expert assistance to effectively resolve your financial issue. Contact us to receive additional information and professional support from specialists of the leading debt collection agency.

# DEBT COLLECTION AGENCY BELIZE

22.08.2024

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