Steps for debt recovery in Moroccan law

Friendly Reminder

The first step usually involves trying to recover the debt amicably, without resorting to legal action. This step includes:

  • Sending reminder letters: After the first delay, the creditor sends one or more reminder letters to the debtor to remind them of the debt. This can be done via registered mail or email.
  • Negotiation: If necessary, a direct discussion between the creditor and the debtor may be arranged, either to agree on a payment plan or find a compromise.

2. Formal Notice

If the friendly reminder fails, the next step is the formal notice:

  • Sending a formal notice: This is a formal letter sent to the debtor, informing them that they have a deadline (often 8 to 15 days) to pay the debt. If the debt is still unpaid after this period, the creditor can take legal action.

3. Legal Action

If the debt remains unpaid, the creditor may consider legal action:

  • Order to Pay: This is a quick procedure, often used for undisputed debts. The creditor applies to the competent court (the court of first instance) to obtain an enforceable title. If the debtor does not contest it, the judge orders immediate payment.
  • Main legal proceedings: If the debtor disputes the debt or if the order to pay is insufficient, the creditor may initiate a standard legal procedure to obtain a court decision on the matter.

4. Enforcement

If a court decision is made in favor of the creditor (e.g., an order to pay or a final judgment), the creditor can request the enforcement of the decision:

  • Seizure of assets: This may include seizing bank accounts, wages, or other assets of the debtor to recover the owed sum. Once the assets are seized, the creditor can recover part of the debt by selling those assets.
  • Real estate seizure: If the debt is significant, a real estate seizure may be considered.

5. Judicial and Criminal Recovery

In some cases, criminal measures may be considered, particularly if the debtor has acted in bad faith (fraud, forged documents, etc.), which could lead to criminal penalties in addition to the recovery of the debt.