Debt Сollection in Suriname

The debt collection process in Suriname 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 debt collection.

The average time for informal extra-judicial 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.

Before initiating judicial collection, it is worth paying attention to the limitation period. The limitation period is 30 years. For claims by traders for payment of the cost of delivered goods, the limitation period is 5 years. The consequences of missing the limitation period apply only upon application by the debtor. An admission of debt, made verbally or by action by the debtor, interrupts the limitation period. After the interruption, the limitation period begins to count anew.

Surinamese law provides for judicial debt collection in ordinary legal proceedings.

The parties appear in person before the court, or with the assistance of counsel if they so desire, unless they have elected to be represented by an attorney. The judge may, at any time and at any stage of the case, whether to attempt conciliation, if the case seems to him suitable for amicable settlement, whether to obtain information or for other important reasons, order the personal appearance of one or more parties.

The ordinary trial is conducted by filing a statement of claim with the court, after which the court decides whether to accept the claim, notifies the defendant and makes preparations for the hearing of the case on the merits. If the claim complies with the procedural requirements, the clerk of the court promptly enters the claim in the general register. The judge then fixes a time for the case to be heard in court and summons the parties to appear before the court, with an offer to ensure the attendance of witnesses whom they wish to examine and to produce evidence which they intend to use.

When summoning the defendant, the bailiff or authorized person who serves the summons at the same time notifies the defendant that he may, if he wishes, file a written answer before or on the day of the hearing.

If the plaintiff is not a resident of Suriname, he must, at the request of the other party and before the latter is required to present his objection or counter-arguments to the court, provide security for the payment of the costs of the trial, damages and interest to which the plaintiff may be condemned. The judge shall determine the amount up to which the security must be provided and shall determine the manner in which this security is to be provided.

If the defendant fails to appear in court and the prescribed time limits and formalities have been complied with, the case shall be heard in his absence and the plaintiff’s claim shall be upheld unless the court considers it to be unlawful or unfounded. A default judgment shall not be rendered against a defendant who has filed a written answer before or on the day of the hearing but fails to appear in person or through a representative.

The case is considered orally in a court session, without prejudice to the right of the parties to submit documents signed by them or their representatives or lawyers at this session. These documents, as well as the claim and the written response (if it was submitted in writing), are read out at the session.

The judge has the right, if he considers it necessary for the correct and orderly course of the case, to give the parties the necessary explanations during the consideration of the case, ask questions and even point out the legal and evidentiary means that they can use.

When both parties have appeared, the judge hears their mutual explanations and, if possible, issues a decision immediately. If the parties request an extension at the hearing, the judge may grant their request if he considers it justified and set a date for the next hearing at which the parties must appear again. If the parties disagree on the factual circumstances of the case and the examination of witnesses or other evidence may affect the decision on the case, the judge shall begin the examination of witnesses or the examination of other evidence immediately or, if necessary, at the next scheduled court hearing. After examining the evidence, the court makes a decision.

The decision of the court of first instance may be appealed within 30 days of notification of the content of the decision. The appeal suspends the execution of the decision if it cannot be executed temporarily. If there is a request from an interested party, the complaint is heard in court with the participation of the parties. After the hearing is completed, the appellate court makes a final decision, which comes into legal force from the moment it is announced and is not subject to appeal.

After the court decision comes into legal force, the creditor should initiate the enforcement procedure. The court decision can be presented for enforcement within 5 years. Within the framework of the enforcement of the court decision, the creditor’s claims can be satisfied by arresting and writing off funds from the debtor’s accounts; arresting the movable and immovable property of the debtor with their subsequent sale; arresting and confiscating securities; arresting and confiscating sea and aircraft.

If the debtor has signs of insolvency, the creditor should consider the option of bankruptcy of the debtor. Signs of insolvency arise when the debtor has ceased to fulfill its payment obligations. Bankruptcy covers all property of the debtor at the time of declaring bankruptcy, as well as property that he acquires during the bankruptcy procedure. If the debtor is a partnership, the bankruptcy covers all the property of all partners who are jointly and severally liable for the entire debt at the time of declaring bankruptcy, as well as the property they acquire during the bankruptcy procedure. In addition, for the benefit of the bankruptcy estate, the invalidity of all actions performed by the debtor before declaring bankruptcy without an obligation, regardless of their name, which damaged the creditors, may be declared invalid, provided that it is proven that both the debtor and the person with whom or for whose benefit he acted were aware that these actions would lead to damage to the creditors. Among such actions, the following should be highlighted in particular: agreements in which the value of the obligation on the part of the debtor significantly exceeds the value of the obligation on the part of the other party; actions to satisfy or secure a debt whose payment period has not yet arrived; transactions with related parties. Thus, everything that was removed from the property of the debtor as a result of an invalid action must be returned by the debtor to the creditor who declares the invalidity. If the debtor cannot return it, or if he cannot return it in the condition in which it was received, he is obliged to compensate the damage to the bankruptcy estate.

If you have any questions or need support for international debt collection in Suriname, 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 SURINAME

11.09.2024

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