Debt Collection in Mauritania

The debt collection process in Mauritania 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 installment 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 the collection of private debts is 15 years. The limitation period for the collection of commercial debts is 5 years. The consequences of the expiration of the limitation period are applied in court only at the request of the debtor. The limitation period for commercial obligations 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. For private obligations, it is prohibited to extend the limitation period beyond fifteen years. The limitation period is interrupted by any act by which the debtor acknowledges the debt to the creditor. For example, if the debtor has paid part of the debt; if the debtor has requested a deferment of payment; if the debtor has provided a surety or other guarantee; if the debtor has invoked set-off in response to the creditor’s demand. After interruption, the limitation period begins to run anew.

Mauritanian law provides for judicial collection of debts in the ordinary court procedure and in the order for payment.

The ordinary court procedure begins with the filing of a written application to the court. The application must be accompanied by: a list of written evidence in the possession of the plaintiff, with a file containing the originals or certified copies of this evidence; a list of written evidence in the possession of third parties; a list of witnesses, indicating the facts that are intended to be proven by each witness.

If the application complies with the procedural requirements, the court registers it and within three days transfers the application and the specified evidence to the bailiff for notification of the debtor. The bailiff must transfer these materials to the defendant within five days of receiving them.

The defendant must file a response to the application with the court registry within twenty days of notification. The response must be accompanied by: a list of evidence in support of his response, in his possession or in the possession of third parties, with the relevant materials attached; a list of witnesses and the facts that are supposed to be proven by the testimony of each witness. If the defendant is outside Mauritania, the period for response is 40 days.

On the appointed day indicated in the summons, the parties must appear in person or through their representative. Before the start of the proceedings, the chairman of the court or the judge preparing the case may attempt to reconcile the parties. In the event of reconciliation, the chairman of the court, with the assistance of the court secretary, draws up a reconciliation protocol, which has executive force. If reconciliation is impossible, the court continues the proceedings, hearing the parties in an adversarial manner. If the defendant or his representative fails to appear, the court hears the case in absentia.

If the court considers that the case has been sufficiently examined, the chairman terminates the hearing and issues a decision immediately. If the case is not ready for a decision, the court postpones it for a more thorough discussion at the next hearing or, if necessary, orders investigative measures. In exceptional cases, the court may postpone the hearing of the case to another date at the request of the parties. The postponement is possible for no more than 15 days in each case. Each party has the right to one postponement of the case. In any case, the decision must be issued within 30 days.

The procedure for issuing an order for payment is used to collect a debt that is based on a contract or a bill of exchange or there is an acknowledgment of debt that is not contested by the debtor. If the amount of the debt exceeds 50,000 Mauritanian ouguiyas, the creditor is obliged, before filing a claim, to notify the debtor through the bailiff that in the event of non-payment within 7 calendar days, the procedure for issuing an order for payment will be initiated. If, on the basis of the documents submitted, the court considers the claim to be justified in whole or in part, it issues a ruling on the issuance of an order for payment. If the court rejects the claim, its decision cannot be appealed. In this case, the creditor will have to collect the debt through the usual procedure.

The order for payment must be served on the debtor within six months. Otherwise, it will become invalid. After receiving the order for payment, the debtor must pay the amount specified in the order within one month or file an objection within the same period. If the debtor does not object, the order for payment can be executed by force. If the debtor files an objection, the court considers it and decides whether to uphold the order for payment or cancel it.

The decision of the court of first instance can be appealed to the court of appeal within 15 days from the date of notification of the contested decision. If the interested party resides outside Mauritania, the appeal period is increased from two to three months, depending on the distance. If it appears that the appellant has filed an appeal against the decision of the court of first instance with the aim of delaying the proceedings, the court may fine him from 20,000 to 300,000 Mauritanian ouguiyas. The appeal filed suspends the contested decision. The decision of the court of appeal may be appealed to the Supreme Court of Mauritania within two months from the date of notification of the contested decision. In exceptional cases, the court may, at the request of the applicant, suspend the execution of the contested decision if its execution would lead to an irreparable situation. The duration of this suspension may not exceed six months, after which the suspension loses its effect and a new suspension may not be granted. The decision of the Supreme Court is final and cannot be appealed further. 

Once the judgment has entered into legal force, the creditor must initiate enforcement proceedings. The limitation period for enforcement of the judgment is 15 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 company shares, seizing and confiscating the debtor’s property held by third parties.

An alternative to debt collection from a company or an entrepreneur is the procedure of judicial liquidation of the debtor. According to the Commercial Law of Mauritania, the creditor has the right to initiate this procedure if the debtor is unable to cover its obligations with its available assets, and the creditor’s claim is certain, liquid and payable. Within the framework of this procedure, if the debtor’s assets are insufficient to fully satisfy the creditors’ claims, it is possible to cancel the debtor’s transactions made during the suspicious period with the intent to harm the creditors. The suspicious period covers the period from the date of cessation of payments until the decision to open the procedure, extended by the period applicable to certain contracts. The decision to open the procedure sets the date of cessation of payments. This date cannot be earlier than 18 months before the opening of the procedure. According to the provisions of the Commercial Code, all gratuitous transactions made by the debtor after the date of cessation of payments are null and void. The court may also invalidate any transactions of a compensated nature, any payments, any provision of guarantees, if they were made by the debtor after the date of termination of payments. As a result of the cancellation of the above actions and transactions, it is possible to return back to the debtor what he lost from such transactions and thereby increase the liquidation estate to satisfy the claims of creditors and cover the costs of implementing the judicial liquidation procedure.

If you have any questions or need support for international debt collection in Mauritania, 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 MAURITANIA

28.11.2024

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