Debt collection in Belgium

The debt collection procedure in Belgium begins with an assessment of the debtor’s solvency, his field of activity, the history of the company, the availability of documentary evidence of the debt, current court cases and enforcement procedures, as well as the possibility of challenging the debt. This assessment determines the strategy that will be used on behalf of the client during the collection process.

If the debtor does not have current court cases or outstanding court decisions on debt collection, and he is actively engaged in commercial activities, then it is advisable to use the stage of out-of-court debt collection.

This stage involves active negotiations with the debtor to reach an agreement to pay the creditor’s claims or other possible settlement options (for example, return of goods, transfer of debt to a third party, exchange of services or goods).

Interaction with the debtor begins immediately after sending the notification by mail, email, telephone or instant messengers. This process involves intensive communication with the debtor in order to apply constant pressure. The main task is to establish contact with key decision makers to achieve speedy debt repayment.

The average time for unofficial out-of-court collection is up to 60 days (except in cases where an installment plan for debt repayment 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, you should proceed to recovery through the court.

Also, pre-trial collection can occur with the involvement of a bailiff, who sends an amicable letter to the debtor with an offer to repay the debt within a certain period. In case of non-payment of debt, the creditor should also go to court.

Before initiating legal action, you should pay attention to the statute of limitations. The statute of limitations for debt collection is 10 years. The legislation does not provide for the possibility of changing the specified limitation periods by agreement of the parties. The consequences of missing the limitation period are applied by the court only if the defendant declares this. The limitation period is interrupted if the debtor acknowledges the debt, for example a written acknowledgment of the debt. In addition, the basis for interrupting the limitation period is an official notice of debt sent by the creditor, his lawyer or other authorized person. Such notice must be sent by registered mail with confirmation of delivery. Interrupting a deadline in this way can only be implemented once without affecting other interruption methods. After the interruption, the statute of limitations begins to count again.

Belgian law provides for judicial collection of debt in the form of general proceedings and by issuing a payment order.

General legal proceedings are carried out by submitting a summons to the court to summon the defendant, after which the court summons the defendant and prepares for the consideration of the dispute. The usual summons period for defendants located in Belgium is 8 days. In other cases, the period for summoning the defendant ranges from 15 to 80 days and depends on the remoteness of the defendant’s location from Belgium. After calling the defendant, the court adds the case to the general list. The parties exchange documents and their opinions by submitting them to the registry, where the parties can familiarize themselves with them without visiting court.

If the parties agree, the case may be considered at a preliminary hearing using the brief argument procedure. If the parties do not agree and the case concerns the collection of an undeniable debt, then by default the case will be considered through brief arguments. Alternatively, the parties or their attorneys may jointly decide to use a written procedure. In this case, within a month from the date of submission of materials to the office, the judge may require oral explanations on the issues indicated by him and set a hearing date for this purpose.

During or before the oral argument, the judge may propose that oral debate be replaced by interactive debate. If the parties agree, the judge presides over the debate, during which he has the opportunity to advise the parties on issues that he considers relevant and which can enlighten him. The parties may raise questions during these arguments that were not raised by the judge if they were mentioned in their opinions. After the conclusion of the arguments or debates, the court makes a decision in the form of a verdict.

If the defendant fails to appear at the hearing at which the case was scheduled or adjourned, a default judgment may be sought against him. In a default judgment, the judge grants the plaintiff’s claims or defenses unless such claims or defenses are contrary to public policy.

The decision of the court of first instance may be appealed by the parties to the appellate court within one month from the date of delivery of the decision or notification of it. After the opening of the appeal proceedings, it is included in the general list and subsequently considered at the court hearing. After considering the appeal, the court makes a decision, which becomes final from the moment it is announced. The decision of the court of appeal can be appealed within 3 months from the date of notification of the decision. Filing a cassation appeal suspends the entry into force and execution of the contested decision. As a result of considering a cassation appeal, the Supreme Court of Belgium makes a decision that comes into force from the moment it is announced and the case is not subject to further review, except in cases where, according to the decision of the court of cassation, the case is sent for re-examination to another court.

The procedure for issuing a payment order is applicable to undisputed claims for the recovery of a sum of money not exceeding 1,860 euros. To implement this procedure, it is necessary to first serve the debtor with a demand for payment through a bailiff or by sending a registered letter with confirmation of delivery. From the moment the demand is sent, the debtor has 15 days to satisfy the stated requirements. If the requirements are not met within the specified period, the request is submitted to the court, which accepts or rejects it within 15 days. If the court satisfies the request in whole or in part, then the issued payment order has the force of a default judgment. The debtor has the right to protest such a payment order. If the court refuses to satisfy the request, then the creditor’s claims can be considered as part of the general procedure. This procedure only applies if the debtor is located in Belgium.

After the judgment comes into force, the creditor should initiate enforcement proceedings. As part of the enforcement of a court decision, the creditor’s claims can be satisfied by seizing and writing off funds from the debtor’s accounts; seizure of movable and immovable property of the debtor with their subsequent sale; seizure and sale of securities; arrest and confiscation of company shares.

If the debtor has signs of bankruptcy, the option of bankruptcy proceedings for the debtor should be considered. According to the Commercial Law Code, a debtor who persistently stops paying and whose credit history is damaged is in bankruptcy. If a company whose partners have unlimited liability is declared bankrupt, the company is required to declare bankruptcy for its partners. Within the framework of this procedure, provided that the debtor’s assets are absent or insufficient, it is possible to challenge and invalidate the debtor’s transactions made before the opening of insolvency proceedings. Among such transactions, it should be noted, for example: all transactions related to the free disposal of movable or immovable property, as well as acts, transactions or agreements under which the value of what was transferred by the debtor significantly exceeds the value of what he received from the opposite party. As a result of the cancellation of such transactions, it is possible to return back to the debtor what he lost from such transactions and thereby increase the bankruptcy estate to satisfy the claims of creditors and cover the costs of implementing the bankruptcy procedure.

If you have any questions or need support with international debt collection in Belgium, our company is ready to provide its expert assistance to effectively resolve your financial issue. Contact us to receive additional information and professional support from specialists of the leading debt collection agency.

# DEBT COLLECTION AGENCY BELGIUM

26.07.2024

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