Debt Collection in Haiti

The debt collection process in Haiti 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 behalf of the client in the collection process.

If the debtor has no current litigation 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 rapid debt collection.

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 produce 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 is 20 years. The limitation period for claims related to the retail sale of goods to private consumers is 1 year. For claims arising from marine insurance contracts, the limitation period is 5 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 anew.

Haitian law provides for judicial debt collection in the ordinary court procedure and in the simplified procedure.

The ordinary judicial procedure is carried out by filing a claim with the court, after which the court issues a summons and serves it on the defendant. Within 8 days after the summons is served, the defendant must appear in court and object to the claims presented. If the defendant is in the Antilles or on the American continent, the period for appearing in court is 6 months. If the defendant is in another place overseas, the period for appearing is 1 year. If the defendant fails to appear within the specified period, the plaintiff’s claims may be considered in absentia based on the arguments and facts presented by the plaintiff.

If the defendant appears on the day of the hearing, and if the defendant does not admit the claim, the court hears the defendant’s objection and proceeds to the stage of investigating the circumstances of the case. During this stage, the parties must provide facts that are subject to proof. The facts must be formulated by a simple act of conclusion without filing documents and requests. After this, the parties must reject or admit the facts provided within 3 days, otherwise they can be considered recognized and proven. For rejected facts, the court conducts a subsequent investigation by studying the presented written evidence, calling and questioning witnesses, and obtaining expert reports.

After completing the investigation stage, the court holds final debates between the parties and makes a decision that comes into force from the moment it is announced.

The simplified judicial procedure is applicable to cases with small amounts of claims and is implemented according to the rules of the ordinary procedure only with certain simplifications and in a shorter time frame.

The decision of the court of first instance may be appealed within 30 days from the date of the contested decision by filing a cassation appeal with the office of the court that made the contested decision. Filing a cassation appeal does not suspend the contested decision, except in cases where the interested party makes a proportionate contribution. The cassation appeal is considered at a court hearing with the participation of the interested parties. As a result of examining the complaint, the cassation court makes a decision that comes into legal force from the moment it is announced.

After the court decision comes into legal force, the creditor should obtain a writ of execution and initiate the enforcement procedure. 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 sea vessels and their subsequent sale; seizing and confiscating securities; seizing and confiscating fruits and crops; seizing and confiscating the debtor’s property that is in the hands of third parties.

If the debtor shows signs of insolvency, the creditor should consider the option of declaring the debtor bankrupt. According to the Commercial Code, any businessman who stops making payments is in a state of bankruptcy. The Code provides for two types of bankruptcy: ordinary and fraudulent. At this stage, if the court finds that the debtor has committed actions or transactions with the purpose of deceiving creditors in order to avoid repayment of the debt, they may be declared invalid. Among such transactions, it is necessary to note: gratuitous transfer of property; fraudulent transactions in relation to creditors, provided that the debtor’s counterparties were aware of the purposes of such transactions; payments on commercial debts that have not yet matured. As a result of the cancellation of such transactions, it is possible to return back to the debtor what he lost from such transactions and, due to this, increase the liquidation estate to satisfy the claims of creditors and cover the costs of implementing the bankruptcy procedure.

If you have any questions or need support on international debt collection in Haiti, 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 HAITI

28.08.2024

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