Debt collection in Guinea

The debt collection process in Guinea 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 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 Guinea 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 Guinea 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 cannot 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 Guinea is carried out in the ordinary judicial procedure and by order of payment.

Ordinary judicial proceedings begin with the filing of a claim in court. If the claim meets the procedural requirements, the court issues a summons to summon the defendant. The summons must be served at least eight days before the hearing, but this period may be extended depending on the distance of the defendant. If the debtor is outside the territorial jurisdiction of the court but still within Guinea, the period is extended by one month. For debtors residing in Europe or Africa, the period is extended by two months, and for those residing on other continents, by three months.

On the appointed day, the parties must appear in person or through their representatives. If the defendant fails to appear, and if the defendant has not submitted a brief or statements, the court will render a judgment in absentia, unless the plaintiff agrees to postpone the hearing. If the defendant appears, the court will hear the case and may render a judgment on the same day if all the circumstances of the case are clear.

If the case is not ready for judgment, the court will postpone the hearing to another date and set deadlines for the submission of documents or statements. Depending on the circumstances of the case, the court may refer the case to the judge responsible for preparing the case for trial.

The judge responsible for preparing the case is required to take all necessary measures to fully investigate the case. He monitors the fair course of the proceedings, summons the parties and records their positions, appoints experts, verifies the authenticity of documents and carries out other investigative measures that are necessary to establish the truth in the case.

After completing the preparation, the judge prepares a report and transfers the case to the chairman of the court for consideration of the case. The chairman of the court evaluates the received report, holds final discussions with the parties and makes a decision.

The procedure for issuing a payment order is regulated by the Debt Settlement Act (OHADA) and is intended for the collection of debts arising from contracts, negotiable bills or cheques. To initiate it, the creditor must apply to the court with an application for a payment order, attaching documents confirming the existence of the debt. If the court, on the basis of the documents submitted, finds the creditor’s claims fully or partially justified, it issues a corresponding order. In the event of a full or partial refusal to satisfy the application, this court decision is not subject to appeal, and the creditor can only protect his interests by filing a claim under the general procedure. 

Certified copies of the application and the order must be served on the debtor within three months. Failure to comply with this deadline results in the invalidity of the order. After receiving the documents, the debtor is obliged to either pay the debt within 15 days or file an objection. If no objection is received, the order comes into force as an enforcement document. In the event of an objection, the judge tries to reconcile the parties. In case of successful reconciliation, an act is drawn up, signed by the parties, one copy of which contains the enforcement formula. If reconciliation is impossible, the court immediately considers the case and issues a decision, even in the absence of the debtor. Such a decision is equivalent to one issued as a result of adversarial proceedings and replaces the order for payment.

The decision of the court of first instance may be appealed to the court of appeal within ten days from the date of the contested decision. The validity of the contested decision is suspended during the appeal procedure. The decision of the court of appeal may be appealed to the Supreme Court of Guinea within two months from the date of the contested decision. During the appeal period, the validity of the decision of the court of appeal is not suspended. The decision of the Supreme Court is final and cannot be further appealed.

After the court decision comes into legal force, the creditor must initiate the enforcement procedure. The period for presenting a court decision for execution is 30 years. As part of the enforcement of a court decision, the creditor’s claims may be satisfied by seizing and writing off funds from the debtor’s accounts; seizing the debtor’s movable and immovable property with their subsequent sale; seizing and confiscating securities, seizing and confiscating the debtor’s property held by third parties.

One of the alternative methods of debt collection is the initiation of bankruptcy proceedings against the debtor. In the Republic of Guinea, such a procedure is regulated by the Uniform Insolvency Law OHADA. The creditor may initiate it if his claims are undisputed, liquid and subject to payment. In case the debtor’s assets are insufficient to fully satisfy the creditors’ claims, it is possible to cancel transactions made by the debtor with the purpose of causing damage to creditors. Such transactions made in the period from the moment of suspension of payments to the beginning of the bankruptcy procedure include: gratuitous transfer of property; transactions in which the debtor’s obligations significantly exceed the obligations of the other party; early repayment of debts for which the payment period has not yet arrived; provision of security for previously incurred obligations; any paid transactions in which the other party knew about the debtor’s financial insolvency. Cancellation of such transactions allows for the return of property or assets lost by the debtor, which increases the liquidation estate. This contributes to a more complete satisfaction of creditors’ claims and coverage of expenses associated with the bankruptcy procedure.

If you have any questions or need support on international debt collection in Guinea, 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 GUINEA

04.12.2024

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