Debt collection in Gabon

The debt collection process in Gabon begins with an assessment of the debtor’s solvency, its field of activity, 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 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 Gabon 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 legislation of Gabon 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 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 Gabon is carried out in the ordinary judicial procedure and by issuing an order for payment.

The ordinary judicial procedure is carried out by filing an application to initiate proceedings. The application, from the moment of its registration, is transmitted to the president of the court, who, by his order, sets the date of the hearing for the consideration of the case. Within three days, a copy of the application and the chairman’s order are transferred to the bailiff for delivery to the defendant.

The period for appearing in court is at least fifteen days from the date of service of the summons. This period is increased depending on the distance. If the debtor is outside the territorial jurisdiction of the court, the period is increased by one month, if the debtor is outside the territory of Gabon, the period is increased by two months.

If the creditor is not a resident of Gabon, then at the request of the defendant, the creditor must provide a deposit to cover the costs and damages to which they may be sentenced. The amount of the deposit is determined by the court decision. Until the deposit is made, the defendant may not defend himself against the creditor’s claims. The creditor may be released from providing a deposit if he proves that he owns real estate located in the territory of the Gabonese Republic, which is sufficient to secure the said obligations.

On the appointed day, the parties must appear in person or through their representatives. If the parties appear, the court hears the parties’ explanations and considers the conclusions and documents they have submitted. If the court finds that the parties’ explanations and conclusions are sufficient to consider the case on the merits, the court closes the preliminary proceedings and schedules a hearing on the merits. This hearing may take place on the same day. The court may also decide that the parties must appear again on the appointed day for a final discussion of the case if it finds that an additional exchange of conclusions or the provision of documents is necessary. In this case, it sets a period for each party to submit conclusions and provide documents.

If the defendant fails to appear on the appointed day, the court may consider the case in his or her absence based on the available materials or order that the defendant be summoned again.

If at the first appointed hearing the court finds that the case is not ready for consideration on the merits, the court orders investigative measures. During the investigation, the court interrogates the parties and witnesses, verifies the authenticity of documents, orders an expert examination and other procedural issues. After the completion of the investigation, the court considers the case on the merits and makes a final decision after the parties have debated.

The procedure for issuing a payment order is regulated by the OHADA Debt Settlement Act and is used to collect debts arising from a contract, a negotiable bill or a check. To initiate this procedure, the creditor must apply to the court for a payment order, attaching documents confirming the debt. If the court finds that the application and documents confirm the validity of the claims in full or in part, an order for payment for the corresponding amount is issued. In the event of a full or partial refusal to satisfy the application, the creditor cannot appeal this decision, but has the right to file a claim in the general procedure.

Certified copies of the application and the payment order must be given to the debtor within three months, otherwise the order will lose its legal force. Upon receipt of the documents, the debtor is required to either pay the debt within 15 days or file an objection within the same period. If no objection is filed, the order becomes an enforcement document. If an objection is filed, the judge seeks to reconcile the parties. If a compromise is reached, a reconciliation act is drawn up, one copy of which contains the enforcement formula. If reconciliation is impossible, the court immediately considers the case and issues a decision on the merits, even in the absence of the debtor. This decision is equivalent to one issued in adversarial proceedings. In this case, the court’s decision replaces the original 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 contested decision. The appeal period is extended by the distance periods specified above. A timely appeal suspends the contested decision. The decision of the court of appeal may be appealed to the Supreme Court of Gabon within two months from the date of the contested decision. During the appeal period, the contested decision may be suspended at the request of the interested party if the execution of the decision would cause irreparable harm. The decision of the Supreme Court is final and is not subject to further appeal.

Once the judgment has entered into legal force, the creditor must initiate enforcement proceedings. A judgment may be brought for enforcement for 30 years. Within the framework of the enforcement 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, confiscating crops and fruits.

An alternative method of debt collection is to initiate bankruptcy proceedings against the debtor. In the Republic of Gabon, this procedure is regulated by the provisions of the Uniform Insolvency Law OHADA. The creditor has the right to initiate the process if his claims are undisputed, determined in amount and subject to payment. If the debtor’s property is insufficient to fully satisfy the claims of all creditors, it is possible to cancel transactions made by the debtor with the intent to cause damage. Such transactions concluded between the cessation of payments and the commencement of bankruptcy proceedings include: gratuitous transfer of assets; transactions where the debtor’s obligations significantly exceed the obligations of the other party; early repayment of debts that have not yet matured; provision of security for existing debts; as well as any transactions where the other party knew about the debtor’s financial insolvency. The cancellation of such transactions allows the return of property or other assets lost by the debtor, which increases the volume of the liquidation estate to satisfy creditors’ claims and cover the costs of the bankruptcy proceedings.

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

# DEBT COLLECTION AGENCY GABON

20.12.2024

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