Debt Collection in Guyana

The debt collection process in Guyana 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, current litigation and enforcement proceedings, and the ability to dispute the debt. This assessment determines the strategy that will be used on the client’s behalf in the collection process.

If the debtor has no current litigation or outstanding judgments for debt collection and is actively engaged in business, then it is advisable to use the out-of-court debt collection stage.

This stage involves active negotiations with the debtor 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 messenger. 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, then 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 is 6 years. The limitation period is interrupted if the debtor acknowledges the debt, for example by written admission or partial payment of the debt or interest. After the interruption, the limitation period begins to count again.

Guyana’s legislation provides for judicial collection of debt in the ordinary court procedure and in the order of summary proceedings.

The courts of first instance are the Magistrates’ Courts and the High Courts. Magistrates’ Courts have the power to hear cases for debts up to $100,000 in ordinary proceedings. Cases for larger amounts are heard in the High Courts in ordinary proceedings.

The ordinary proceedings are affected by filing a statement of claim with the clerk of the court, whereupon the clerk issues a summons to the defendant to appear before the court to answer. The summons must be served on the defendant, together with the statement of claim, at least three days before the date fixed for the hearing.

The defendant may at any time before the hearing give written consent to judgment being entered against him or to pay into court any sum of money which he considers to be in full satisfaction of the plaintiff’s claim, together with the plaintiff’s costs up to the date of payment.

At the hearing either party may be represented by a solicitor. In addition, the magistrate may permit a relative, servant or agent of the plaintiff or defendant, who has written authority for that purpose, to appear and represent the plaintiff or defendant.

If on the day of the hearing the defendant fails to appear at the hearing and fails to show sufficient cause for his absence, the magistrate may, on proper proof of service of summons, proceed to hear and determine the case from the plaintiff’s side only, and the judgment rendered thereon shall have the same effect as if both parties had appeared.

If on the day of the hearing both parties appear, the magistrate shall read the plaintiff to the defendant and require him to state his defense to the plaintiff. The court shall then proceed to hear the plaintiff, examine the witnesses and consider the evidence adduced by the parties. At the end of the hearing the court shall either at the same or at a subsequent hearing render judgment on the case and, if so requested by the plaintiff or the defendant, shall state the reasons in writing to the plaintiff or the defendant, as the case may be.

A summary procedure shall be applied at the request of the parties or at the initiative of the court where, after examining the evidence of the parties, it is established that the plaintiff has no real prospect of succeeding in the claim; or the defendant has no realistic prospect of successfully defending the claim.

If the plaintiff or defendant wishes to appeal against a decision of the first instance court, they must serve a notice of appeal or notice of their application for leave to appeal within 28 days of the date of the decision or service of the decision on the party. Appeals from decisions of magistrates’ courts are heard by the High Courts. Appeals from decisions of the High Courts are heard by the Court of Appeal. On hearing the appeal, the Court of Appeal makes a decision which becomes final on its pronouncement and is not subject to further appeal.

After the court decision comes into legal force, the creditor should obtain a writ of execution and initiate the enforcement procedure. The final court decision can be presented for execution within 4 years from the date of entry into legal force. As part of the enforcement of the court decision, the creditor’s claims can 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.

An alternative way to influence the debtor may be the application of the provisions of the Law on Debtors, according to which the court, if there are certain grounds, has the right to sentence the debtor to imprisonment for up to six weeks or until the debt is fully repaid.

If the debtor has signs of insolvency, the creditor should consider the option of declaring the debtor bankrupt. The legislation provides for a number of characteristic features of insolvency, among which are cases where the debtor makes any transfer or assignment of his property fraudulently in relation to his creditors; leaves Guyana; another creditor has received or is currently entitled to enforce a final judgment against the debtor for any amount, in the absence of a stay of execution of that judgment; notifies any of his creditors that he has suspended or intends to suspend payments on his debts, or within one seven-day period notifies three or more of his creditors of his inability to pay his debts in full. At this stage, if the court finds that the debtor has acted or entered into transactions with the intent to defraud creditors and evade payment of the debt, such transactions may be declared invalid. This will allow the debtor to return the property lost as a result of these transactions, which, in turn, will increase the liquidation estate to satisfy the claims of creditors and cover the costs of bankruptcy proceedings. 

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

# DEBT COLLECTION AGENCY GUYANA

10.09.2024

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