Debt Collection in Trinidad and Tobago

The debt collection process in Trinidad and Tobago begins with an assessment of the debtor’s solvency, their line of business, the history of the business, the availability of documentary evidence of the debt, current court cases and enforcement proceedings, and the ability to dispute the debt. This assessment determines the strategy that will be used on the client’s behalf in the collection process.

If the debtor has no current court cases or outstanding judgments for debt collection and is actively engaged in business, 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 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 messenger. This process involves intensive communication with the debtor in order to apply constant pressure. The main objective is to establish contact with key decision makers 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, then 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 4 years. The limitation period is interrupted if the debtor acknowledges the debt, for example by written admission or partial payment of the debt or interest. After the interruption, the limitation period begins to count again.

Trinidad and Tobago law provides for judicial collection of debt in the ordinary judicial procedure and in the order of simplified proceedings.

The courts of first instance are the minor civil courts and the High Courts. The minor civil courts have the power to hear cases for debts up to $50,000 in the ordinary course. Cases where the amount claimed is greater are to be heard in the High Courts in the ordinary course.

The ordinary court procedure is commenced by a written summons, signed by the clerk of the court in which the claim is to be heard. The summons must state the cause of action in the annexure to the summons. The summons must be served on the defendant not less than three or eight days before the date of the hearing (the date varies according to the jurisdiction of the court).

When the plaintiff hands over the summons to the clerk of the court for signature, he must attach to it an affidavit, executed by himself or by a solicitor, which can state with certainty the facts establishing the cause of action and the amount claimed, and also stating that in his opinion there is no defence to the claim. Unless the defendant files a motion, supported by an affidavit of fact, or a written notice alleging an irregularity or other legal defense within ten clear days after service of the summons, and satisfies the judge of a genuine issue to be tried or a defect in the proceedings, the plaintiff may request a decision on his claim.

If the judge, upon consideration of the affidavit or notice, finds that the defendant should be granted leave to defend against all or part of the plaintiff’s claim, he will so notate the affidavit or notice and set a trial date. At trial, the court hears the parties’ positions, evaluates the evidence presented, and makes a decision on the merits.

Summary proceedings are administered by magistrates when the amount in dispute is less than $15,000. The procedure is similar to the ordinary procedure, only in a more simplified form and in a shorter time frame.

If the plaintiff or defendant wishes to appeal the decision of the court of first instance, they must serve a notice of appeal or notice of their application for leave to appeal within 14 days of the date on which the contested decision was announced. As a result of the consideration of the appeal, the Court of Appeal makes a decision that comes into legal force from the moment of its announcement and is not subject to subsequent appeal.

After the court decision comes into legal force, the creditor should obtain a writ of execution and initiate the enforcement procedure. Interest is charged on the debt at a rate of five percent per annum from the date of entry into force of the court decision until it is executed. The final court decision may be presented for execution within 12 years from the date of entry into legal force. As part of the enforcement of the 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. 

If the debtor has signs of insolvency, the creditor should consider the option of bankruptcy of the debtor. The legislation provides for a number of characteristic signs of insolvency, among which it is necessary to highlight cases when the debtor commits a fraudulent transfer, donation, delivery or transfer of his property or any part thereof; creates any lien on property that shows signs of fraud; leaves the territory of Trinidad and Tobago; notifies any of its creditors that it suspends or intends to suspend payments on its debts; ceases to pay its obligations as they fall due. At this stage, in the event of insufficient assets of the debtor to fully satisfy the claims of creditors, it is possible to cancel the debtor’s transactions that caused damage to the debtor or deprived him of assets. Among such transactions, the following should be highlighted in particular: repayment of debt or transfer of assets to only one creditor to the detriment of other creditors; sale of assets at a reduced price; payment of dividends during the period of signs of insolvency. As a result of the cancellation of such transactions, it is possible to return to the debtor what he lost from such transactions and, due to this, 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 Trinidad and Tobago, our company is ready to provide its expert assistance to effectively resolve your financial issue. Contact us for more information and professional support from specialists of the leading debt collection agency.

# DEBT COLLECTION AGENCY TRINIDAD AND TOBAGO

09.09.2024

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