Debt collection in Burundi

The debt collection process in Burundi begins with an assessment of the debtor’s solvency, their business sector, the history of the business, the availability of documentary evidence of the debt, ongoing court cases and enforcement proceedings, and the possibility of disputing 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 ongoing court cases or outstanding judgments for debt collection and is actively engaged in commercial activities, then 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 to achieve the fastest possible debt recovery.

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.

Before initiating judicial collection, it is worth paying attention to the statute of limitations. The statute of limitations for debt collection is 30 years. The statute of limitations is interrupted if the debtor acknowledges the debt in writing. After the interruption, the statute of limitations begins to count again.

Judicial debt collection in Burundi is carried out in the usual manner.

The usual judicial process is initiated by filing a request or application with the court. If the request or application meets the procedural requirements, the court issues a summons to summon the defendant. The period for appearing in court after receiving a summons is eight days, and for persons outside Burundi, the period for appearing is sixty days.

To hear the case, the chairman of the court appoints a pre-trial judge, who sets the time limits and procedures for exchanging findings and procedural documents, as well as fulfilling the necessary obligations.

On the day appointed by the summons, the parties must appear in person or through their representatives. If the defendant fails to appear, the court may consider the case unilaterally or issue a re-summons. When the parties appear, the judge hears the arguments of the parties and examines the evidence presented. If the court receives a full understanding of the circumstances of the case at the first hearing, it may issue a decision immediately. Otherwise, the court continues the hearing by ordering investigative actions.

During the investigative actions, the court interrogates witnesses, appoints experts, inspects objects, verifies the authenticity of documents, requests the personal participation of the parties and performs other necessary procedural actions. Upon completion of the investigation, the judge transfers the case for consideration on the merits, during which the evidence collected is assessed and debates are held between the parties. After the conclusion of the debate, the court shall render its decision immediately or adjourn it for further deliberation for a period not exceeding thirty days.

The decision of the court of first instance may be appealed to the court of appeal within thirty days from the date of the contested decision. An appeal filed in due time shall suspend the contested decision. The decision of the court of appeal may be appealed to the Supreme Court of Burundi within sixty days. The effect of the decision of the appellate decision may be suspended during the consideration of the appeal if its execution would cause irreparable damage. The decision of the Supreme Court is final and not subject to further appeal.

After the court decision comes into legal force, the creditor should initiate the enforcement procedure. The court decision can be presented for enforcement within 30 years. As part of the enforcement of the court decision, the creditor’s claims can 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 the harvest; seizing and confiscating the debtor’s property that is in the possession of third parties.

An alternative option for debt collection is the bankruptcy procedure of the debtor. According to the bankruptcy law, the debtor is considered to be in a state of bankruptcy if he has stopped his payments and his creditworthiness has been shaken. As part of this procedure, if the debtor’s assets are insufficient to fully satisfy the creditors’ claims, it is possible to cancel the debtor’s transactions made from the moment of suspension of payments until the opening of the bankruptcy procedure. Such transactions shall include, in particular: 1) all gratuitous transactions; 2) all transactions on a paid basis, if the value of the obligations assumed by the debtor significantly exceeds the value of the obligations assumed by its counterparty; 3) all payments for debts whose payment period has not yet arrived; 4) all payments for overdue debts made not in cash or by trade bills; 5) all pledges established on the property of the debtor for debts previously concluded; 6) all transactions in which the opposite party was aware that the debtor suspended payments. As a result of the cancellation of the above transactions, it is possible to return back to the debtor what he lost from such transactions and, due to this, increase the liquidation estate to satisfy the claims of creditors and cover the costs of the bankruptcy procedure.

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

# DEBT COLLECTION AGENCY BURUNDI

30.12.2024

401