Debt collection in Tunisia

The debt collection process in Tunisia begins with an assessment of the debtor’s solvency, its field of activity, 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 on debt collection and is actively engaged in commercial activities, 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 debt repayment installment 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, 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 debt collection is 15 years. The limitation period for debt collection on the basis of a bill of exchange is three years. The consequences of the expiration of the limitation period are applied in court only at the request of the debtor. The limitation period is interrupted by any act by which the debtor acknowledges the debt to the creditor. For example, if a balance sheet was drawn up and approved; if a partial payment was made; if the debtor requests a deferment of payment; if he provides a surety or other security. After the interruption, the limitation period starts again.

Tunisian law provides for the judicial collection of debts by ordinary court proceedings and by order for payment.

The ordinary court proceedings begin with the filing of a written application by the lawyer with the court. A copy of the application is transmitted to the defendant through the bailiff, together with copies of the evidence. The participation of the lawyer in the court of first instance is mandatory. The lawyer’s office is considered the chosen address of his client throughout the proceedings in which the lawyer represents the client.

The application must contain a request for the defendant to submit a written response to the claim, supported by evidence, through the lawyer by the appointed date of the hearing. In the absence of such a response, the court will continue the consideration of the case on the basis of the documents submitted. The period for scheduling a hearing cannot be less than 21 days if the defendant resides in Tunisia, and 60 days if he resides abroad.

The plaintiff’s lawyer must submit to the court registry the original statement of claim, a copy of which was served on the defendant, together with evidence and a register in two copies containing a list of the documents submitted, seven days before the scheduled hearing date. After checking that the court fees have been paid, the secretary registers the statement of claim in the appropriate register and includes it in the hearing schedule specified in the summons. He then transfers the case to the court chairman to appoint a reporter.

If the defendant engages a lawyer, the latter must notify the plaintiff’s lawyer of his representation through the bailiff and forward a copy of this notification to the court registry for inclusion in the case file. He must also give the plaintiff’s lawyer a copy of his response to the claims, as well as copies of supporting documents. If the defendant does not engage a lawyer or the defendant’s lawyer does not submit an objection, the court will continue to consider the case and make a decision on the basis of the available materials.

The case is heard on the appointed day specified in the summons. The court verifies the appearance of the parties, their powers and compliance with procedural rules. The court may order a second summons to the defendant if he has not received the first summons in person. If the court finds the case ready for consideration, it shall set a hearing for the parties. Such a hearing may be set for the same day.

The court may proceed to the consideration of the case immediately without further investigation if the claim is based on a confession, a notarial deed, a private document with a genuine signature or on legal presumptions. In this case, the court allows the lawyers of the parties to exchange arguments and documents within the established time limits.

If the court considers that the case is not ready for consideration, the court may, on its own initiative, call witnesses and experts whose testimony it considers useful, and, if necessary, refer the case to the reporting judge for additional investigations, including interrogation, inspection, examination, investigation of the fact of forgery of documents, and any other measures necessary to establish the truth. After completing the additional investigations, the reporting judge prepares a report and returns the case to the chairman of the court for consideration of the case. During the consideration of the case, the court evaluates the evidence collected, holds debates between the parties and makes a decision. The court’s decision is made by a majority of three judges.

The procedure for issuing an order for payment is used to collect debts in a clearly defined amount on the basis of an agreement or a check and bill of exchange. If the amount of the debt exceeds 150 dinars, the creditor is obliged to notify the debtor through the bailiff before filing the application that in the event of non-payment within five full days, collection proceedings will be initiated against him. The notification must be supported by documents confirming the debt. If the debtor lives abroad, the specified period is increased to 30 days. After the expiration of the specified period, the creditor has the right to file an application with the court for an order for payment. Documents confirming the existence of the debt and evidence of notification of the debtor are attached to the application. If the court finds the debt justified, the court issues an order for payment within three days. Otherwise, the application is rejected. The order for payment is served on the defendant and can be appealed in the appellate procedure. 

The decision of the court of first instance can be appealed to the court of appeal within 20 days from the date of notification of the contested decision. An appeal has the effect of returning the case to the state it was in prior to the rendering of the contested decision, to the extent that the appeal was filed. The decision of the court of appeal may be appealed to the Court of Cassation of Tunis within 20 days from the date of notification of the contested decision. An appeal in cassation shall not suspend the execution of the contested decision. In exceptional cases, the court may, at the request of the applicant, suspend the execution of the contested decision for one month if it considers that its execution could lead to irreversible consequences. The decision of the Court of Cassation is final and cannot be appealed further.

Once the judgment has entered into legal force, the creditor must initiate enforcement proceedings. There is no limitation period for enforcement. Within the framework of the enforcement of a 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; arrest and confiscation of the company’s shares, arrest and confiscation of the debtor’s property held by third parties.

An alternative solution to collect debt from a company or an entrepreneur is the bankruptcy procedure of the debtor. According to the Tunisian Commercial Law, the creditor has the right to initiate this procedure if the debtor has stopped making payments.  In addition, a debtor who has ceased to make payments is required to file a self-declaration with the office of the competent court within one month of the cessation of payments. Failure to do so would result in the debtor being declared bankrupt and subject to the penalty provided for in article 290 of the Tunisian Penal Code, namely two years’ imprisonment. Within the framework of the bankruptcy procedure, if the debtor’s assets are insufficient to fully satisfy the claims of creditors, it is possible to cancel transactions with debtors made with the intention of causing harm to creditors. Such transactions or actions performed after the date of the payment transactions (or within twenty days preceding this moment), but before the bankruptcy decision is made, include, for example: actions and dispositions of a gratuitous nature, except for minor gifts in accordance with custom; early payments, regardless of the form they are made; payment of debts, the payment date of which has come, are applied in ways other than cash, bills of exchange, checks and payment orders; provision of security for an existing debt; any transaction with a counterparty that was aware that the debtor had ceased making payments. Cancellation of these actions or transactions can be carried out within two years from the date of the bankruptcy decision. As a result of cancellation of the above-mentioned actions and transactions it is possible to return back to the debtor what he was deprived of from such transactions and at the expense of this to increase the liquidation mass to satisfy the claims of creditors and cover the costs of implementation of bankruptcy proceedings.

If you have any questions or need support on international debt collection in Tunisia, our company is ready to provide its expert assistance for the effective resolution of your financial issue. Contact us to get additional information and professional support from specialists of the leading debt collection agency.

# DEBT COLLECTION AGENCY TUNISIA  

25.11.2024

421