Debt collection in Burkina Faso

The debt collection process in Burkina Faso begins with an assessment of the debtor’s solvency, its business sector, the history of the business, the availability of 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 in the collection process.

If the debtor has no current court cases or outstanding judgments for debt collection and is actively engaged in commercial activities, it is advisable to use the out-of-court debt collection stage.

This stage involves active negotiations with the debtor in order to reach an agreement on the payment of the creditor’s claims or other possible settlement options (e.g. return of goods, transfer of the debt to a third party, exchange of services or goods).

Interaction with the debtor begins immediately after sending a notice by mail, email, phone or instant messengers. This process involves intensive communication with the debtor in order to exert constant pressure. The main objective is to establish contact with key decision makers in order to achieve the fastest possible recovery of the debt.

The average time for informal out-of-court collection is up to 60 days (except in cases where a payment plan 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, it is necessary to proceed to collection through the courts.

The Republic of Burkina Faso is a member of OHADA (Organization for the Harmonization of Business Law in Africa), which includes nine approved Uniform Legal Acts applicable to all member countries of the above-mentioned organization. Therefore, the procedures for judicial debt collection, enforcement and bankruptcy are mainly regulated by the provisions of the relevant Uniform Acts.

Before initiating judicial collection, it is worth paying attention to the limitation period. The general limitation period under the national legislation of Burkina Faso is 30 years. According to the provisions of the general commercial law OHADA, obligations arising from commercial transactions between merchants or between merchants and non-merchants expire after five years. The effects of the expiration of the limitation period are applied in the court of first instance and on appeal only at the request of the debtor. The limitation period is interrupted by the recognition of the creditor’s claims by the debtor. After the interruption, the limitation period begins to run anew. The limitation period may be shortened or extended by agreement of the parties. However, it cannot be shortened to less than one year or extended to more than ten years. The parties may also, by mutual agreement, supplement the list of reasons for the suspension and interruption of the limitation period.

Judicial debt collection in the Republic of Burkina Faso is carried out in the ordinary judicial procedure and by issuing an order for payment.

The ordinary judicial procedure is initiated by filing a claim through a summons. A summons is an act by which a bailiff notifies a defendant that a case has been instituted against him and that he must appear in court on a specified date or time. The court institutes proceedings on the initiative of either party by depositing a copy of the summons in the registry of the court.

The summons must be served within two months of the date of issue. Otherwise, it will lapse. The time limit for appearance is at least fifteen days from the date of receipt of the summons. However, this period is extended by 15 days for persons outside the territorial jurisdiction of the court and by two months for persons outside Burkina Faso.

If the creditor is not a resident of Burkina Faso, the defendant has the right, before filing any objections, to require the creditor to provide security to cover the legal costs and damages to which the creditor may be held. The amount of the security is determined by the court decision. However, a foreign creditor is exempt from the obligation to provide security if he proves that the real estate owned by him, located in the territory of Burkina Faso, is sufficient to cover possible obligations.

On the day of the hearing, the chairperson checks whether sufficient time has passed since the summons was served for the defendant to prepare a defense. The court then hears the positions of the parties present or their lawyers. If, in the opinion of the chairperson, the case is ready for consideration on the merits based on the explanations of the parties or their lawyers, as well as the applications filed and documents provided, the court sends the case for a hearing. Cases in which the defendant has not appeared are also sent for a hearing if they are ready for consideration on the merits, except in cases where the chairperson orders the defendant to be summoned again. In any of the above cases, the chairperson closes the preparatory stage and sets a date for the hearing, which may take place on the same day.

If the chairperson considers that the case is not ready for a hearing, he or she sends it to the judge responsible for conducting the preparatory investigation. The judge in charge of preparing the case carries out preparatory activities aimed at establishing the truth in the case, namely: requesting additional opinions from the parties; appointing and conducting an expert examination; requesting and examining additional evidence; questioning witnesses; checking the authenticity of documents; and other procedural matters. After completing the above activities, the judge completes the preparation and sends the case to the presiding judge for a hearing.

At the hearing on the merits, the court evaluates the results of the preliminary activities and holds final arguments between the parties, after which it makes a final decision.

The procedure for issuing a payment order is regulated by the OHADA Debt Settlement Act and is used to collect debts arising from contracts, negotiable bills or checks. To initiate the procedure, the creditor files an application for an order with the court, attaching documents confirming the debt. If the court, based on the materials provided, finds the application to be fully or partially justified, it issues an order for payment of the claimed amount. If the application is denied in whole or in part, the court’s decision cannot be appealed. The creditor can protect its interests by filing a claim in the general procedure.

Copies of the application and the payment order must be served on the debtor within three months, otherwise the order will lose legal force. After receiving the documents, the debtor has 15 days to pay the debt or file an objection. If no objection is received, the order becomes an enforcement document. When an objection is filed, the judge tries to reconcile the parties. If successful, a reconciliation act is drawn up, signed by both parties, and one of its copies is certified with an enforcement formula. If reconciliation is impossible, the court immediately proceeds to consider the case and makes a decision, even in the absence of the debtor. Such a decision is equivalent to the results of adversarial proceedings and replaces the previously issued order for payment.

The decision of the court of first instance may be appealed in the court of appeal within two months from the date of the contested decision, or from the date of notification of the decision, if the party was not present when the decision was announced. The period for appealing decisions in uncontested cases is 15 days. The appeal periods are increased taking into account the distances specified above. During the appeal period, the contested decision is suspended. The decision of the Court of Appeal may be appealed to the Court of Cassation of Burkina Faso within two months from the date of the contested decision. During the appeal period, the contested decision is not suspended. The decision of the Court of Cassation is final and cannot be appealed further.

After the court decision comes into legal force, the creditor must initiate the enforcement procedure. The period for submitting a court decision for enforcement is 30 years. As part of the enforcement of a court decision, the creditor’s claims may be satisfied by seizing and writing off funds from the debtor’s accounts; seizing the movable and immovable property of the debtor with their subsequent sale; seizing and confiscating securities, seizing and confiscating the debtor’s property held by third parties.

An alternative method of debt collection is to initiate bankruptcy proceedings against the debtor. In the Republic of Burkina Faso, this procedure is governed by the provisions of the Uniform Insolvency Law (OHADA). A creditor may initiate proceedings if his claims are undisputed, certain in amount and payable. In cases where the debtor’s assets are insufficient to fully repay the debts, it is possible to annul transactions concluded with the aim of causing damage to creditors. Such transactions, concluded between the suspension of payments and the initiation of bankruptcy proceedings, include: gratuitous transfer of property; transactions in which the debtor’s obligations significantly exceed those of the other party; early payment of debts that do not require immediate repayment; provision of security for previously incurred debts; as well as any transactions in which the other party knew about the debtor’s financial difficulties. The cancellation of such transactions allows the debtor’s assets to be returned, which increases the amount of funds available to satisfy creditors’ claims and cover the costs associated with the bankruptcy procedure.

If you have any questions or need support for international debt collection in Burkina Faso, our company is ready to provide its 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 BURKINA FASO

10.12.2024

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