Debt Collection in Sudan

The debt collection process in Sudan 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 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, then the next step is to proceed to collection through the courts.

There is no statute of limitations for debt collection in Sudan, so collection through the courts can be initiated at any time, regardless of the age of the debt.

Sudanese law provides for debt collection through the ordinary court procedure.

The ordinary court procedure begins with the filing of a statement of claim in court. The statement of claim must be accompanied by documents confirming the validity of the claim and a list of witnesses referred to by the plaintiff. It is prohibited to submit documents or call witnesses not included in the above list.

The court then sets an open court hearing to register the claim. At this hearing, the court discusses the grounds for the claim with the plaintiff and examines the evidence presented. If the claim meets the requirements, the court issues an order to accept the claim, pay the fee, and summon the defendant to court. The court fee must be paid within one day of the court order. Otherwise, the claim is dismissed.

On the appointed day of the case hearing, the parties must appear in person or through their authorized lawyers. If neither the plaintiff nor the defendant appears at the first hearing, the case is subject to dismissal. The plaintiff has the right to file a new claim or, within seven days of the case being dismissed, to petition for its reinstatement. If the court finds the plaintiff’s reasons for not appearing to be valid, it reverses the decision to dismiss the case and sets a new hearing. If the plaintiff appears and the defendant fails to appear at the first hearing, the court shall hear the case in absentia if the defendant has been duly notified. If the court finds that the defendant has not been notified, the hearing shall be adjourned for further notice. If the defendant appears at subsequent hearings and gives a valid reason for not appearing at the first hearing, the court may allow the defendant to present a defense, subject to reimbursement of costs or other conditions.

If a default judgment is entered against an absent defendant, the defendant may, within seven days of notice of the judgment, file a motion to set aside the judgment. If the court finds that the defendant was not properly notified or had good cause for absence, the court shall set aside the judgment and order a new hearing, subject to possible costs.

At the hearing, the court shall hold a discussion with the parties present to determine the legal and factual issues in dispute between them. In lieu of a discussion, the court may order the parties to submit written explanations. If the defendant fails to present a defense and written explanations, the court may, after hearing the plaintiff’s evidence, enter judgment against the defendant or make any other decision it considers appropriate.

After completing the discussion or consideration of the written explanations, the court shall determine on the basis of them: 1) issues that are not in dispute between the parties; 2) legal and factual issues on which there is disagreement; 3) a summary of the evidence that the parties intend to provide to support the disputed facts.

After the disputed issues have been determined, the court proceeds to the hearing of the case, where it hears each party and its evidence. After reviewing the evidence, the court holds a final debate between the parties and makes a decision.

The decision of the court of first instance may be appealed to the court of appeal within 15 days from the date of notification of the contested decision. The decision of the court of appeal may be appealed to the Supreme National Court of Sudan within 15 days from the date of notification of the contested decision. The decision of the Supreme Court is final and cannot be appealed further.

After the court decision comes into legal force, the creditor should 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 and confiscating securities.

An alternative option for debt collection is the bankruptcy procedure of the debtor. According to the Bankruptcy Law of Sudan, the creditor has the right to initiate this procedure if it is a specific amount that is subject to immediate payment or payment at a specified time in the future; and the debtor has committed an act of bankruptcy within three months preceding the filing of the bankruptcy petition. The law classifies the following events as acts of bankruptcy: the debtor has left Sudan or has remained outside of it; the debtor’s property has been seized and sold as a result of the execution of a court decision; the debtor has notified one of his creditors that he has stopped paying his debts or intends to do so; the debtor has been imprisoned for more than 21 days as a result of the execution of a civil court order or decree for failure to pay a sum of money. At this stage, if the debtor’s assets are insufficient to fully satisfy the creditors’ claims, it is possible to set aside the debtor’s transactions made with the intent to damage the creditors. Such transactions or actions may include, in particular: transactions made at reduced prices; giving an advantage to one creditor over others; any fraudulent transaction in relation to creditors, provided that the debtor’s counterparty knew about such fraud. The court may cancel these actions if the debtor who made the transfer or other specified action was declared bankrupt, based on a bankruptcy petition filed within three months after such transfer or action. As a result of the cancellation of the above transactions or actions, 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 bankruptcy procedure.

If you have any questions or need support on international debt collection in Sudan, 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 SUDAN

18.11.2024

257