Debt Collection in Senegal

The debt collection process in Senegal 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 in order 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 Senegal 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 law of Senegal is 10 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 Senegal is carried out in the ordinary judicial procedure and in the order of 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 within two days. The summons must be served at least eight days before the hearing. This period is extended depending on the distance. If the debtor is outside the territorial jurisdiction of the court, the period is extended by thirty days; if the debtor is outside the territory of the Republic of Senegal, the period is extended by one to four months depending on the distance.

On the appointed day, the parties must appear in person or through their lawyers. At the beginning of the case and at any stage of the procedure, the judge may, on his own initiative or at the request of one of the parties, attempt to reconcile them, either in an open session or in his office. In the event of reconciliation, the judge, with the participation of the secretary, draws up a protocol with the terms of the agreement. The protocol has the force of an enforcement document. It is not subject to appeal. If reconciliation is not achieved, the court hears the parties and enters the case in the general list of hearings. In the event of the defendant’s failure to appear, the case is heard in absentia.

After the case is entered in the general list, the parties exchange opinions and documents on the case and inform the court about this. At the hearing, the parties or their authorized representatives have the right to present oral comments or develop their conclusions submitted and included in the case. The judge may also take any measures that he considers useful to clarify the circumstances of the case, in particular, to order the interrogation of witnesses or experts or a visit to the site. After all the facts of the case have been established, the court holds a debate between the parties and makes a decision.

The procedure for issuing a payment order is regulated by the Debt Settlement Act (OHADA) and is used to collect debts arising from contractual obligations, negotiable bills or cheques. To initiate the procedure, the creditor files an application for a payment order with the court, enclosing documents proving the debt. If the court finds the application fully or partially justified, an order for payment of the specified amount is issued. In the event of a full or partial refusal to satisfy the application, the creditor has no right to appeal the decision, but can file a claim under the standard court procedure.

A certified copy of the application and the payment order must be served on the debtor within three months. If this requirement is not met, the order is considered invalid. After receiving the documents, the debtor must either pay the debt or file an objection within 15 days. If no objection is filed, the payment order acquires the force of an enforcement document.

If an objection is filed, the judge attempts to reconcile the parties. In case of successful reconciliation, a document signed by the parties is drawn up, one copy of which has executive force. If reconciliation is not possible, the court will immediately hear the case and decide on the claim, even in the absence of the debtor. Such a decision is equivalent to one rendered in the adversarial process and replaces the previously issued order for payment.

The decision of the court of first instance may be appealed to the court of appeal within two months from the date of the contested decision. The appeal period is extended by one to four months, depending on the distance, if the applicant is outside Senegal. An appeal filed in time suspends the contested decision. The decision of the court of appeal may be appealed to the Supreme Court of Senegal within two months from the date of the contested decision. The appeal period is extended by the application of the distance rules specified above. During the appeal period, the contested decision is not suspended. The decision of the Supreme Court is final and cannot be further appealed.

Once the judgment has entered into legal force, the creditor must initiate enforcement proceedings. The judgment may be brought for enforcement within 10 years. Within the framework of the enforcement of the judgment, 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 Senegal, this procedure is regulated by the Uniform Insolvency Law OHADA. The creditor has the right to initiate this procedure, provided that his claims are undisputed, certain and payable. If the debtor does not have sufficient assets to fully repay the debts to creditors, it is possible to cancel transactions made with the aim of causing damage to creditors. Such transactions, carried out between the suspension of payments and the commencement of bankruptcy proceedings, include: gratuitous transfer of property, agreements with clearly unequal obligations of the parties, early repayment of debts that have not yet matured, provision of security for existing debts, as well as any transactions in which the other party knew about the debtor’s financial insolvency. The cancellation of such transactions allows the debtor’s assets to be returned, which increases the bankruptcy estate used to satisfy creditors’ claims and cover the costs of the bankruptcy proceedings.

If you have any questions or need support on international debt collection in Senegal, 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 SENEGAL

29.11.2024

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