Debt collection in French Guiana

The debt collection process in French Guiana 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 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 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 to achieve the fastest possible debt recovery.

The average time for informal extra-judicial collection is up to 60 days (except in cases where a debt repayment installment plan is agreed upon). If this stage does not bring the expected results or after the initial analysis it becomes clear that it is not applicable, it is necessary to proceed to collection through the court.

Before filing a claim in court, it is necessary to take into account the limitation period, which is 5 years. The limitation period is interrupted if the debtor acknowledges his debt, after which the countdown begins anew. By agreement of the parties, the limitation period may be reduced or increased, but not less than one year and not more than ten years. The parties may also agree to expand the grounds for suspending or interrupting the limitation period provided for by law.

The procedure for debt collection by court in French Guiana is governed by French law, which provides for collection by general court proceedings and by order of payment.

General court proceedings are initiated by the issuance of a summons. If the amount claimed does not exceed 5,000 euros, the process may be initiated by filing an application. The case initiated by the summons is submitted to the court, the date of which the registrar notifies the applicant when presenting the draft summons. If the defense of a lawyer is mandatory, the parties must appoint one. For cases in which the amount exceeds 10,000 euros, the participation of a lawyer is mandatory. The parties are also required to notify each other of the appointment of lawyers.

On the day of the preliminary hearing, the case is referred to the chairman of the chamber, who examines it. The chairman discusses the progress of the case with the lawyers present and, after analyzing their opinions and the documents submitted, decides whether the case is ready for examination. If the chairman considers the case ready, the investigation is considered complete. This also happens if the parties have agreed to a trial without a hearing. If the case is not ready for consideration, a preparatory judge is appointed.

The preparatory judge conducts the investigation, ensuring that the deadlines for exchanging opinions and transmitting documents are met. He sets the deadlines for the investigation, taking into account the nature and complexity of the case, as well as the opinion of the lawyers. The judge may invite the parties to answer unresolved questions and clarify the facts and legal aspects of the case. When the investigation is complete, the judge closes this stage and transfers the case to the chairman of the chamber.

After receiving the case, the chairman sets a date for the hearing and summons the parties. Following the hearing and debate, the court issues a decision, which comes into force after the deadline for appeal has expired.

The decision of the court of first instance may be appealed in the court of appeal within one month of its issuance. The appeal filed temporarily suspends the validity and execution of the contested decision in the part that is appealed. The case is considered orally. Following the appeal proceedings, the court issues a decision that immediately comes into legal force. The decision of the appellate court may be appealed to the Court of Cassation within two months of its adoption. The appeal is also considered in the form of a hearing. After considering the appeal, the Court of Cassation issues a final decision that immediately comes into force and is not subject to further appeal.

The payment order procedure is used to collect debts if the debt is due under a contract or arises from a legal obligation and is for a specific amount. To use this procedure, the creditor must file an application with the court, enclosing documents proving the debt. The creditor may request that, if there are objections, the case be immediately transferred to the competent court of choice. If the court rejects the request, the creditor must use the ordinary court procedure. If the documents provided fully or partially confirm the claim, the judge issues a payment order for the amount and issues the creditor a copy of it with the writ of execution. At the request of the creditor, a copy of the order with the writ of execution is sent to the debtor through the bailiff. The payment order loses its force if it is not served on the debtor within six months of the date of its issue. The debtor has the right to object within one month of receiving the payment order. In the event of a timely objection, the case is transferred to the competent court for consideration in the usual manner.

After the court decision has entered into legal force, the creditor must put a note on the certified copy of the decision regarding enforcement, notify the debtor of this and transfer the decision to the bailiff to initiate the enforcement procedure. The court decision can be executed within 10 years from the date of its adoption. As part of the enforcement procedure, the creditor’s claims can be satisfied by seizing and writing off funds from the debtor’s accounts, seizing and selling his movable and immovable property, seizing and selling intangible assets, seizing and selling securities, and seizing the debtor’s property held by third parties. 

If the debtor stops making payments and cannot repay the debt with his assets, the creditor should consider the possibility of judicial collection or judicial liquidation. The collection procedure is aimed at preserving the debtor’s activities, jobs and ensuring the payment of debts. The liquidation procedure provides for the termination of the debtor’s activities or the sale of his assets through the full or partial transfer of his property and rights. In these procedures, certain actions of the debtor are considered invalid if they were performed after the cessation of payments. Such actions include: gratuitous transfer of assets, conclusion of contracts with clearly unfavorable conditions for the debtor, early repayment of debts, and changes in trust agreements concerning assets already transferred. Claims to set aside such actions may be filed by the administrator, legal representative, plan executor, or prosecutor. These measures are aimed at restoring the debtor’s assets and increasing the likelihood of full satisfaction of creditors’ claims.

In the course of judicial liquidation of a legal entity, if insufficient assets are discovered, the court may assign responsibility for this shortfall to the managers whose errors led to this situation. In this case, the court may oblige all or some of the managers involved in the management errors to compensate for the shortfall in assets in whole or in part. If the judicial liquidation concerns a sole proprietor with limited liability to whom assets were allocated, the court may similarly oblige him to compensate for the shortfall in assets. The amount recovered from the debtor is deducted from his undistributed assets. These measures are aimed at increasing the debtor’s assets, which increases the likelihood of full satisfaction of creditors’ claims.

If you have any questions or need support for international debt collection in French Guiana, 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 FRENCH GUIANA

12.09.2024

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