While debtors almost always dodge the phone calls when they are in debt, the creditors are always bound to hate when their debt collection calls are ignored.
It is very crucial for the money grantor to have some kind of written proof or oral testimony recorded of the loan they had given. However, most people seem to think of this as unimportant and take matters in their own hand. This makes sure that the grantor/creditors are protected from financial abuse, manipulation and other financial crimes. Yet, at other times, the creditors can manipulate the debtors with fake amounts, invoices etc.
If both the parties make installed decisions at proper times, then they could avoid ugly court battles for debt collection. However, if you are already deep into the problem, you can use the counsel of debt collection lawyers to provide you legal guidance in the debt collection.
How to know if you need a debt collector?
If you are in debt and are being manipulated falsely, or if you are a creditor and are being evaded, both are legal crimes punishable in the court. You would however need a debt collection lawyers to properly represent you and guide you through the case. Here are some examples where you would need an attorney:
- Creditors frequently calling your home or workplace
- An inability to pay back loans at the present time
- Threat of lawsuit from a creditor
- Being treated unfairly by collectors
Apart from providing guidance for a lawsuit, our debt collection lawyers can also help mitigate by providing debt settlement plans and advice. Here are some other ways a debt settlement attorney could help you:
1. Forwarding files
A collection file begins with forwarding the invoices, the invoice terms, possibly with a statement of account, should any partial payments have taken place.
2. Amicable recovery procedure
Immediately after you send your files, our debt collection lawyers in Belgium will take the necessary steps to send the first notice to the debtors.
Our office follows the reactions that follow this notice.
The reminders are processed and all returned comments will be answered in consultation with you.
If the amicable procedure produces no result, we evaluate the case with you.
The outcome of the evaluation is either a recommendation to close the file, or an advice to sue. This opinion is solely determined by an objective analysis of the prospects of recovery, providing you with minimum cost and the maximum result.
Our analysis is based on:
- the answers of the debtor (e.g. severe financial problems, …);
- familiarity with the bailiffs;
- whether seizure was made ??in person and / or “salary transfers” exist.
Our advice to close the file can be used as proof to the tax authorities to book the outstanding debt.
If in the light of our advice and any dispute of the claim you are to proceed, we will start the legal proceedings.
We then create the summons and let the bailiff sign it, unless the situation offers little hope of recovery.
With the positive verdict, we start the judicial execution.
If your debtor lives abroad, it can be considered to ask the court for a European order for payment. Such an order can then easily be executed in the country of your debtor.
5. Written- Order
The first step of the implementation is the judicial writ of the judgement, (often) together with the “Order to Pay”.
Signing the writ means the start of resistance or appeal period (1 month).
With the “Order to Pay” is also mentioned that in case of non-payment, seizure will take place.
All proposals to repay will be treated in compliance with your guidelines.
6. Seizure of movable property, Garnishment and Sequestration of immovable property
Seizure or sequestration is the most efficient means of pressure with respect to the debtor. After a seizure, the claim becomes very realistic and the unwillingness to pay is usually put aside. Almost all recoverable receivables are collected after a seizure.
The seizure is certainly not inconsiderately made. Before we proceed to seize, all information sources will be addressed:
- social security is checked to determine whether the person works and then the employer is addressed to recover the salary;
- searching the K.B.O (central business registration body) will tell us whether the person is self-employed;
- the D.M.V. will be consulted to check for possession of motor vehicles;
- it will be determined whether the person owns real property;
- through a search in the Central Database of Seizures we get a view of the other proceedings against the debtor.
We use this information along with the impressions of the visit for the summons and the writ to decide whether it is beneficial to seize the movable property of the person concerned.
In addition, whether or not to realise the “Garnishment”, i.e. a seizure of a third party debtor of your debtor. These are mainly the employer, any known customers of the debtor or the bank of the person involved.
In case of large claims it can be considered to seize the immovable property of the debtor.
7. Auction / Partition
Sometimes there is not even a satisfactory response after a seizure. When we consider that the proceeds from the sale of the goods will be sufficient to cover a substantial portion of the outstanding debt, we proceed to charge and sale.
The proceeds of the sale are used to pay (parts) of the debts. Other creditors now have the opportunity to submit their claims and to share in the proceeds. Any additional proceeds will be refunded to the debtor.
For debt collection procedures there are two types of fee arrangements are possible.
A first type of arrangement is a lump sum equal to 10% of the invoice plus the interest owed by the debtor and the legal justice charge for the costs of the proceedings. If a penalty clause is included on your invoice, it usually means that you receive the full principal amount.
Of course, we can also determine an hourly rate.
If the content of the claim is disputed, we will basically always determine an hourly rate.
If you or a loved one needs the counsel of our specialized debt collection lawyers in Belgium for any of the above cases or other than that, please feel free to consult us. We are available 24/7 to offer you the best, tailored legal advice with an excellent representation of your case in court if things are not solved through mitigation.