Debt Collection in Gambia

The debt collection process in Gambia begins with an assessment of the debtor’s solvency, their line of business, 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 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 early 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.

Before initiating judicial collection, it is worth paying attention to the limitation period. The limitation period for debt collection under contractual obligations is 6 years. The limitation period can be interrupted by any action by which the debtor acknowledges the debt. For example, if the debtor has paid part of the debt; if the debtor has asked for a deferment of payment. However, in practice, the Gambian courts are very persistent in applying the limitation rule. The creditor must begin its actions within the specified period in accordance with the rules or lose the right to claim. If the claim is not filed within the prescribed time, the court has no jurisdiction to hear the case further.

The Gambian law provides for judicial collection of debts by ordinary court proceedings and by order for payment.

The ordinary judicial process begins with the filing of a written application with the court. If the application complies with the procedural requirements, the court registers it and forwards it to the sheriff along with the evidence for notice to the defendant.

The defendant must file a written response to the application with the court registry within the time specified in the notice. The response must be accompanied by a list of evidence that supports the defendant’s position.

On the day appointed by the court, the parties must appear in person or through their representatives. Before the trial, the judge may attempt to reconcile the parties. If successful, a reconciliation protocol is drawn up, which has the force of an enforcement document. If reconciliation is not possible, the case is heard in an adversarial manner. If the defendant or his representative fails to appear, the case is heard in absentia.

After examining all the case materials, the court terminates the hearing and issues a decision immediately or, if additional examination is required, postpones the decision until the next hearing or appoints additional investigative actions.

The procedure for issuing a payment order is intended for simplified collection of a debt that is based on a written document or if the debt is not disputed by the debtor. To implement this procedure, the creditor must file a corresponding application with the court with evidence confirming the debt. If the court finds that the creditor’s claim is justified, it issues an order to pay the debt. Otherwise, the court rejects the creditor’s application. In this case, the creditor must act through the usual court procedure.

After receiving an order to pay, the debtor has 14 days to pay the amount specified in the order or challenge the order within the same period. In the absence of an objection, the payment order may be presented for compulsory execution. If the debtor files an objection, the court considers it and makes a decision, which leaves the order in force or cancels it. The decision taken replaces the payment order.

The decision of the court of first instance may be appealed to the court of appeal within 30 days from the date of notification of the contested decision. An appeal filed shall suspend the contested decision. The decision of the court of appeal may be appealed to the Supreme Court of The Gambia within 30 days from the date of notification of the contested decision. In exceptional cases, the court may, at the request of the applicant, stay the execution of the contested decision if its execution would lead to an irreparable situation. The decision of the Supreme Court is final and cannot be further appealed. 

Once the judgment has entered into legal force, the creditor must initiate enforcement proceedings. The limitation period for the enforcement of a judgment is 6 years. Within the framework of the enforcement of a judgment, the creditor’s claims may be satisfied by the seizure and write-off of funds from the debtor’s accounts; seizure of the movable and immovable property of the debtor with their subsequent sale; seizure and confiscation of securities; seizure and confiscation of the company’s shares, seizure and confiscation of the debtor’s property held by third parties.

An alternative option for collecting a debt from a debtor is bankruptcy proceedings. A creditor has the right to initiate this procedure if the debt is a certain amount subject to immediate payment and if one of the following conditions is met: 1) the debtor has notified the creditor within the last three months that it has suspended or is going to suspend the payment of its debts; or 2) a sheriff has, within the last three months, seized any property of the debtor and either sold that property or held it for at least 21 days; or 3) any of the debtor’s creditors has the right to commence enforcement of a judgment or order made against the debtor.

If, during the course of insolvency proceedings, it becomes apparent that the process is or is likely to be difficult for the following reasons: 1) the debtor has absconded or is likely to abscond; 2) the debtor has concealed, destroyed or damaged any property or is likely to do so; or 3) the debtor is likely to fail to appear in court, before the official trustee or at a meeting of creditors, then the court may issue an order for the arrest of the debtor, the seizure of the relevant property, or both.

In addition, if the debtor’s assets are insufficient to fully satisfy the creditors’ claims, the law provides for the possibility of returning the debtor’s assets and funds if the debtor has lost them, provided that the debtor, while in a state of insolvency, made a payment, otherwise alienated property, provided a mortgage or other security, or assumed an obligation with the intention of giving an advantage to one of his creditors at the expense of others during the six months preceding the opening of the proceedings. The implementation of such a return contributes to an increase in the liquidation estate, and this in turn increases the chances of creditors having their claims satisfied in full.

If you have any questions or need support on international debt collection in Gambia, 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 GAMBIA

02.12.2024

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