In the context of the economic crisis that affected companies all over the world, Belgium has also experienced difficulties. There weren’t few Belgian companies that have reached critical situations in which they could not pay their debts and ended up in bankruptcy. But before commencing liquidation procedures, companies can reach an agreement with their creditors and start a debt recovery procedure.
The first debt recovery attempt will usually be done outside the court of justice in Belgium. There are no special provisions for this stage of the debt collection process, only the fact that reminder letters will be sent to the debtor. In cases of companies, bailiffs can check a debtor’s general situation with the Belgian Companies Register. For financial situations though a fee must be paid.
Debt collection can be conducted by collecting agencies or Belgian attorneys in the early stages. They will contact the debtor by sending dunning letters or by phone actions in order to reach an “amicable” agreement by deciding on a payment plan.
There are several court actions that can be fulfilled in a debt recovery process. In Belgium the following debt collection procedures are available:
The prescription time span for a court action is 10 years.
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