Debt collection in Mali

The debt collection process in Mali 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 debt recovery.

The average time for informal out-of-court collection is up to 60 days (except in cases where a debt repayment 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.

The Republic of Mali 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 debt collection, 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 Mali is 20 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 Mali is carried out in the ordinary judicial procedure and by issuing an order for payment.

The ordinary judicial procedure begins with the filing of a claim in court, after which the court, if the claim meets the procedural requirements, issues a summons to summon the defendant. The period between the day on which the summons is issued and the day set for appearance in court is at least eight days. This period increases depending on the distance of the debtor from the court. If the debtor is outside the judicial district, the period is 30 days, if outside Mali but within Africa – two months, and if outside Africa – three months.

On the appointed day, the parties must appear in person or through their lawyers. If on the appointed day the defendant fails to appear or fails to file documents against the claim, the case will be heard in absentia, unless the plaintiff requests an extension. If the defendant and the plaintiff appear, they will be heard in the process and the case will be heard immediately or at the first available hearing. If the presiding judge considers that the case is not ready for immediate consideration, he will appoint a judge to conduct the procedure of preparing the case for trial.

The judge responsible for preparing the case conducts a comprehensive examination of the case, during which he or she reconciles the parties, monitors the progress of the trial, and takes all necessary measures to establish the truth, including ordering an expert examination. After this procedure is completed, the judge issues a ruling on the completion of preparation, prepares a report, and transfers the case to the chairman of the court for trial.

At the trial hearing, the chairman of the court evaluates the report of the preparatory actions and conducts a final debate between the parties, after which he or she makes a final decision.

The procedure for issuing a payment order is regulated by the Debt Settlement Act (OHADA) and is used to collect debts arising from a contract, a negotiable bill or a cheque. To initiate this procedure, the creditor must file an application with the court, enclosing documents evidencing the debt. If the court, having reviewed the materials submitted, finds the application fully or partially justified, it issues an order for payment for the corresponding amount. If the application is rejected (in whole or in part), the court’s decision cannot be appealed by the creditor. The only possible action for the creditor is to file a claim within the framework of standard court proceedings. 

A certified copy of the application and the payment order must be served on the debtor within three months. If this deadline is missed, the payment order loses its legal force. After receiving the documents, the debtor must either pay the debt within 15 days or file an objection. In the absence of an objection, the payment order becomes an enforcement document. If the debtor files an objection, the judge attempts to reconcile the parties. If agreement is reached, a reconciliation act is drawn up, signed by both parties, and one copy of the act receives an enforcement formula. If reconciliation is not possible, the case is immediately considered by the court, which issues a decision even in the absence of the debtor. Such a decision is equivalent to the result of an adversarial trial. In this case, the decision rendered 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 decision of the court of appeal may be appealed to the Supreme Court of Mali within two months from the date of notification of the contested decision. The decision of the Supreme Court is final and cannot be further appealed. During the appeal or cassation appeal, the contested decision may be suspended at the request of the interested party if the execution of the decision would cause irreparable harm.

After the court decision comes into legal force, the creditor should initiate the enforcement procedure. In the context 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 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.

An alternative method of debt collection is the initiation of bankruptcy proceedings against the debtor. In the Republic of Mali, this procedure is regulated by the provisions of the Uniform Insolvency Law (OHADA). The creditor has the right to initiate proceedings if his claims are indisputable, certain and subject to payment. In the event that the debtor’s assets are insufficient to fully satisfy the creditors’ claims, it is possible to cancel transactions made by the debtor with the aim of causing damage to creditors. Such transactions, made during the period from the cessation of payments to the initiation of bankruptcy proceedings, include: gratuitous transfer of property; agreements where the debtor’s obligations significantly exceed the obligations of the other party; early repayment of debts that are not yet due; provision of security for previously incurred debts; as well as transactions concluded with persons aware of the debtor’s financial insolvency. Cancellation of such transactions allows the return of property or assets lost by the debtor, which helps to increase the liquidation estate to satisfy creditors’ claims and cover the costs associated with the bankruptcy procedure. 

If you have any questions or need support on international debt collection in Mali, 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 MALI   

22.11.2024

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