Debt Collection in Belgium

In Belgium, there is no minimum amount to initiate legal action against a debtor. However, the cost and procedure for taking legal action can vary depending on the type of debtor and the court in which you want to file your claim.

The commercial court has jurisdiction over all disputes between companies, regardless of the value of the dispute. A claim by a private individual against a company can also be brought before the commercial court. For smaller amounts, the local court or justice de paix/vredegerecht can be used, unless another court has competence over the matter. There is, once again, no minimum amount required for such cases, but there is a maximum claim limit before the local court. The maximum is 5000 EUR.

In addition, the various costs that a lawsuit entails must also be considered: there are fees for the attorney's services and bailiff and court expenses. The unsuccessful party in a legal procedure has to pay the costs and expenses, which include a fixed portion of the attorney’s fees. Legal advice is highly recommended when considering legal action in Belgium, as the process and requirements are multiple and complex.

However, for undisputed money debts (including small amounts) regarding fixed and due debts between companies, the attorney of the creditor may request a bailiff to recover the debt directly, without having to obtain a judgment first. The latter procedure reduces costs for creditors considerably.

Also, claims regarding any money debt up to a maximum of 1.860 EUR that is fixed and due may be brought before the local court, the commercial court, or the police court (depending on the type of case) by an attorney applying a simplified procedure to request payment.

The value of the claim may determine the type of legal procedure and the court in Belgium. Additionally, the choice of procedure (court, arbitration) may also depend on other factors, such as the parties involved, where they are located, the complexity of the legal issues and the nature of the dispute.

The Belgian legal system distinguishes also between different types of procedures based on the value of the claim (see previous question). The commercial court has jurisdiction over disputes between companies regardless of the value of the claim. If a claim against a company is made by a private individual, it can also be brought before the commercial court.

For lower-value claims, below the threshold of 5000 EUR, the local court or justice de paix/vredegerecht may be competent. This procedure is relatively quick, cost-effective and designed for small disputes.

However, for undisputed money debts of whatever amount with regard to fixed and due debts between companies, the attorney of the creditor may request a bailiff to recover the debt directly, without having to obtain a judgment. The latter procedure reduces costs for creditors considerably.

Also, claims regarding any money debt up to a maximum of 1.860 EUR that is fixed and due may be brought before the local court, the commercial court or the police court (depending on the type of case) by an attorney applying a simplified procedure to request payment.

Legal advice from a Belgian attorney is crucial to navigating the system effectively and selecting the appropriate legal procedure for your specific situation.

Yes, in Belgium the notice of default is a mandatory preliminary step in the event of non-performance by a debtor. The Belgian Supreme Court or Court de cassation/Hof van Cassatie states that prior notice of default is a general principle of law. It shows obligatory good faith and gives the defaulting debtor another chance to fulfil his contractual obligations. The notice of default thus also has a warning and information function and is in this sense mandatory.

The basic principle behind this is that, as a creditor, you are always obliged to give your defaulting debtor prior notice of default in case you think that your debtor is not fulfilling its obligations. In some cases, however, prior notice of default will not be mandatory. This can be the case if the contract stipulates that prior notice of default is not mandatory or if a notice of default would not be functional. In these specific situations, you can omit the formal notice.

It is advisable to consult with a Belgian attorney to advise or assist you in the debt collection process.

First and foremost, the best principle is to know your customers. It is best to obtain information on a customer’s financial situation before agreeing. This can be done by using publicly accessible data such as annual accounts (provided by the National Bank of Belgium), publications in the Belgian Official Gazette or data via the Crossroads Bank for Enterprises.

As some of this public information may be outdated, contacting a Belgian attorney is certainly a cost-effective option. Belgian attorneys have access to the national register and the central file of seizure notices, this allows them to paint a fuller and more accurate picture of the situation.

As a business owner, you can also take preventive measures when entering into agreements. Through customised agreements and general terms and conditions, you can hedge to the maximum against the adverse consequences of defaulting debtors (e.g., requesting advance payments).

If you do encounter defaulting debtors, it is important to take action in time and to follow up quickly, this means sending timely written reminders and notices of default to which you follow up swiftly if no satisfactory response is given. If you have already sent numerous fruitless reminders yourself, it might be best to request an attorney to send a letter of default.

If necessary, a judgment can be obtained normally within a reasonable period. This can then be executed by the bailiff towards your defaulting debtor.

However, for undisputed money debts of whatever amount with regard to fixed and due debts between companies, the attorney of the creditor may request a bailiff to recover the debt directly, without having to obtain a judgment. The latter procedure reduces costs for creditors considerably.

Also, claims regarding any money debt up to a maximum of 1.860 EUR that is fixed and due may be brought before the local court, the commercial court or the police court (depending on the type of case) by an attorney applying a simplified procedure to request payment.

Debt collection can be a complex and sometimes challenging process, but following these best practices can help you increase your chances of successfully recovering the debt while maintaining legal and ethical standards.

The European Payment Order is a simplified judicial procedure for international claims. The processing times in this procedure are meant to be short, allowing quick clarity. However, a European Payment Order is only suitable for undisputed claims. If the debtor disputes the claim, the claim must either be continued through a general court proceeding or the summary order for payment procedure for amounts up to 1.860 EURO.

If Belgian courts have jurisdiction over the case, the European Payment Order form must be sent to the competent Belgian court, which will then consider the claim. If the request is accepted, the court will issue a European Payment Order within 30 days.

If your claim is lower than 2.000 EUR the European Small Claims Procedure may be used as an alternative, again if the Belgian courts have jurisdiction over the case.

The process for international debt collection may be complex, and it's essential to seek professional legal advice to ensure that you are allowed to and follow the appropriate procedure.

When pursuing debt collection in Belgium, you'll need to gather and provide various documents to support your case. The specific documents required can vary depending on the nature of the debt, the parties involved, and other characteristics (delivery of goods or services e.g.). The original contract or agreement between the creditor and debtor is essential (for contractual disputes). This document outlines the terms and conditions of the debt, including payment obligations. Copies of invoices, billing statements, and payment records can help establish the debt's existence and the outstanding amount.

If a gentle reminder has not been successful, the next step is the notice of default.

After that and opposed to a general court proceeding, the European and Belgian procedures for the recovery of undisputed debts are a quicker procedure to recover undisputed monetary debts. These procedures make it possible to obtain an enforceable title without having to go through lengthy court proceedings (a minimal verification by the court will suffice without a contestation).

Under the Belgian procedure, if a company has an unpaid claim supported by the necessary documents, an attorney will verify the undisputed nature and other conditions of application and transfer the file to a bailiff. The bailiff serves a request for payment on the debtor concerned. This final reminder must be accompanied by the creditor's supporting documents, as well as the reply form provided by law. The debtor has one month after the notice to take a position.

If no payment has been made within one month, no repayment plan has been agreed nor a reasoned response by the debtor has been filed, a further eight days must be waited. After this period, the bailiff will draw up a statement of non-contestation at the creditor's request. These additional eight days serve to bring any negotiations to a successful conclusion. The statement is declared enforceable by a magistrate who checks whether the formal requirements have been respected, through an automated process. The bailiff can then use this title to initiate the enforced recovery.

Also, claims regarding any money debt up to a maximum of 1.860 EUR that is fixed and due may be brought before the local court, the commercial court or the police court (depending on the type of case) by an attorney applying a simplified procedure to request payment.

Yes, there is, subject to conditions, a possibility of additional protective measures such as: the seizure of a bank account, a direct claim against a debtor of the debtor or the suspension of further contractual performance.

Notably, the seizure of bank accounts may be an effective tool, especially since, subject to conditions, no court proceeding is needed.