Recovering unpaid debts in Morocco can be a complex and time-sensitive process. Whether you are a business, lender, or individual seeking to reclaim outstanding payments, understanding Moroccan debt recovery laws is essential.
At S&T LAW FIRM, a leading law firm in Casablanca, Morocco, we provide professional debt collection services, including negotiation, legal proceedings, and enforcement measures. This guide outlines the legal framework, procedures, and best practices for debt recovery in Morocco.
1. Debt Recovery Legal Framework in Morocco
Debt recovery in Morocco follows strict legal procedures governed by:
✔️ Moroccan Commercial Law – Governing business transactions & unpaid invoices.
✔️ Civil Procedure Code – Regulating legal actions for debt claims.
✔️ Bankruptcy & Insolvency Laws – Protecting creditors’ rights in case of debtor insolvency.
Key Principle: Moroccan law favors amicable solutions before legal actions to encourage faster settlements.
2. Debt Recovery Process in Morocco
Step 1: Amicable Debt Collection
Before initiating legal action, creditors should attempt to recover debts out of court.
📌 Steps to follow:
1️⃣ Send a formal demand letter (mise en demeure) to the debtor.
2️⃣ Negotiate a repayment plan if necessary.
3️⃣ Use a debt collection agency or legal mediator.
Why? Amicable settlements save time, legal costs, and preserve business relationships.
⏳ Timeframe: 15–30 days (depending on the complexity of the case).
Step 2: Legal Proceedings for Debt Collection
If the debtor refuses to pay, legal action may be necessary.
A. Payment Injunction (Injonction de Payer)
✅ A fast-track court procedure for uncontested debts.
✅ The creditor submits an application to the Commercial or Civil Court.
✅ The judge may issue an order for payment without a hearing.
⏳ Timeframe: 1–3 months.
B. Civil Lawsuit for Debt Recovery
If the debt is contested, the creditor can file a lawsuit.
📌 Steps:
1️⃣ File a claim before the appropriate Moroccan court.
2️⃣ Provide evidence of the debt (contracts, invoices, emails, etc.).
3️⃣ Obtain a court judgment in favor of the creditor.
⏳ Timeframe: 6–12 months (depending on court workload).
Step 3: Enforcement of Debt Collection
Once a judgment is obtained, the creditor can enforce the debt through:
✔️ Bank Account Seizure – Freezing debtor’s accounts.
✔️ Wage Garnishment – Deducting payments from the debtor’s salary.
✔️ Property Seizure – Selling the debtor’s assets to cover the debt.
✔️ Third-Party Seizure – Collecting funds from the debtor’s clients or business partners.
⏳ Timeframe: 2–6 months (depending on enforcement measures).
3. Debt Recovery for Foreign Creditors in Morocco
Challenges for International Creditors
- Language & legal barriers.
- Delayed responses from Moroccan debtors.
- Differences in commercial & banking regulations.
Solutions:
🌍 Local Legal Representation: Hiring a Moroccan law firm ensures compliance with local laws.
🤝 Debt Recovery Agencies: Partnering with professional collectors speeds up the process.
⚖️ International Arbitration: Useful for cross-border disputes.
💼 At S&T LAW FIRM, we assist foreign businesses and investors in recovering debts across Morocco.
4. Debt Recovery in Bankruptcy & Insolvency Cases
If a debtor declares bankruptcy, creditors must follow the Moroccan insolvency procedure:
✅ Declare the debt to the bankruptcy court.
✅ Join the list of creditors claiming assets.
✅ Negotiate repayment terms with the liquidator.
⚠️ Priority is given to secured creditors, followed by employees and unsecured creditors.
5. How Our Law Firm Can Help
At S&T LAW FIRM, our expert debt recovery lawyers provide:
✔️ Pre-litigation negotiations to recover debts quickly.
✔️ Legal representation for debt lawsuits.
✔️ Court enforcement & asset seizure strategies.
✔️ Debt collection for international clients.
📞 Need help recovering unpaid debts? Contact our law firm in Casablanca, Morocco, today!
Conclusion
Debt recovery in Morocco requires a strategic approach, whether through amicable negotiation, legal action, or enforcement measures. Businesses and individuals must act quickly and legally to reclaim outstanding debts.
If you are struggling with unpaid invoices, overdue payments, or bad debts, our team at S&T LAW FIRM offers professional legal support for debt collection in Morocco.
📩 Get in touch for a consultation!