Debt collection in Côte d’Ivoire

The debt collection process in Côte d’Ivoire 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, current 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 current court cases or outstanding judgments on 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 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 Côte d’Ivoire 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 collection of debt, 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 law of Côte d’Ivoire 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 may not be reduced 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 Côte d’Ivoire is carried out in the ordinary judicial procedure and by issuing an order for payment.

The ordinary judicial procedure begins with the service of a summons. In cases of personal actions, the value of which does not exceed 500,000 francs, the case may be initiated by filing a petition.

A minimum of eight days must elapse between the day of service of the summons and the day fixed for appearance if the addressee resides within the jurisdiction of the court. This period is extended by fifteen days if the defendant resides in another region of the country and by two months if he is outside the territory of Côte d’Ivoire.

If the case is initiated by petition, the court clerk draws up a protocol of the filing of the petition, a copy of which is immediately sent to the defendant. In this case, the time limits for appearance by petition are the same as those specified in the previous paragraph.

On the day of the hearing, the parties must appear in person or through their representatives. If the defendant or his representative fails to appear, the case will be heard without the defendant’s participation. If both parties appear or are represented on the day of the hearing, the court may: hear the case immediately if it is ready for hearing; set a date for the hearing, allowing time for the submission of documents or written opinions; refer the case to the chairperson or assigned judge for preparation for hearing.

The judge responsible for case preparation may take such steps as may be necessary to fully consider the case, including: requesting written or oral submissions from the parties; summoning the parties and their representatives for communication, orders or conciliation; requesting additional evidence; ordering examinations, document checks, site inspections or other actions; taking preliminary measures; considering procedural issues.

The preparation procedure must be completed within three months, otherwise a reasoned extension of time is required. If the case is ready for hearing, the judge issues a ruling on the completion of preparation, which is not subject to appeal. The ruling is served on the parties and contains the date of the hearing. The judge also prepares a report on the case, its subject matter, the parties’ arguments and difficulties in order to facilitate the proceedings.

On the day of the hearing, the presiding judge reviews the evidence and the parties’ submissions, evaluates the report on the case (if the case was sent to the preparatory stage), and conducts the debate between the parties. Once the court considers that the case has been sufficiently examined, it declares it closed and immediately retires to make a decision.

The order for payment procedure is regulated by the Debt Settlement Act (OHADA) and is intended for the collection of debts arising from a contract, a negotiable bill or a cheque. To initiate it, the creditor must apply to the court for an order for payment, attaching documents proving the existence of the debt. If the materials submitted confirm the claims in whole or in part, the court issues a corresponding order for payment of the debt. If the application is rejected in whole or in part, the creditor has no right to appeal this decision, but can file a claim in the framework of standard court proceedings.

A copy of the application and the order for payment must be given to the debtor within three months, otherwise the order will become invalid. After receiving the documents, the debtor is obliged to either pay the debt or file an objection within 15 days. If no objection is filed, the order becomes an enforcement document. If an objection is filed, the judge organizes an attempt to reconcile the parties. If an agreement is reached, a reconciliation act is drawn up, signed by the parties, one copy of which has an enforcement formula. If reconciliation is unsuccessful, the court immediately considers the case and issues a decision, even in the absence of the debtor who filed the objection. Such a decision is equivalent to a judicial act issued in the framework of adversarial proceedings. The decision made following the consideration of the objection replaces the originally issued order for payment.

The decision of the court of first instance may be appealed to the court of appeal within one month from the date of the decision being contested. An appeal is not allowed if the amount in dispute is less than 500,000 francs. The decision of the court of appeal may be appealed to the Court of Cassation of the Republic of Côte d’Ivoire within one month from the date of notification of the decision. The appeal period is extended subject to the application of the distance rules described above in the section on time limits for appearing in response to a summons. As a rule, the contested decision is not suspended during the appeal period. However, if the execution of the contested decision is likely to disturb public order or cause irreparable damage, or if the applicant has paid bail to a public financial institution in an amount not less than a quarter of the amount of the claim, the court may suspend the decision. The decision of the Court of Cassation is final and cannot be appealed further.

Once the judgment has entered into legal force, the creditor must initiate enforcement proceedings. A judgment may be brought for compulsory execution for 30 years. Within the framework of the compulsory execution of a judgment, 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 the initiation of bankruptcy proceedings against the debtor. In the Republic of Côte d’Ivoire, this procedure is regulated by the provisions of the Uniform Insolvency Law (OHADA). The creditor has the right to initiate such proceedings if there are undisputed, liquid and payable claims. In the event that the debtor’s assets are insufficient to satisfy all creditors’ claims, it is possible to cancel transactions concluded with the aim of causing damage to creditors. Such transactions concluded during the period from the suspension of payments to the initiation of bankruptcy proceedings include: gratuitous transfer of property; transactions with clearly unfavorable conditions for the debtor; early repayment of debts before the maturity date; provision of security for existing obligations; as well as transactions where the other party knew about the financial insolvency of the debtor. Cancellation of such transactions allows to return the property or assets lost by the debtor, which helps to increase the liquidation estate to satisfy the claims of creditors and cover the costs associated with the bankruptcy procedure.

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

# DEBT COLLECTION AGENCY CÔTE D’IVOIRE

09.12.2024

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