Enforcing Contracts

Resolving Insolvency

Creditor sends formal notice of default ('in gebrekestelling') to debtor

Agency

Creditor

How to?

Deliver formal notice indicating failure to pay and final opportunity to settle

Duration (in Business Days)

1

Additional information

There is no general statutory minimum for civil attachment found. A general guideline is minimum 10000 xcg (debt + legal costs involved). Notice of default can be ommitted if contractual obligations state that a party is in default as soon as payment date passes.

Send 1st written demand letter

Agency

Creditor

How to?

Written demand must state amount due and specific payment deadlines and payment instructions

Duration (in Business Days)

1

Additional information

Often 30 day period to pay

Send 2nd written demand letter

Agency

Creditor

How to?

2nd written demand usual provides shorter payment period

Additional information

14 Day final deadline to pay. Debtor may propose payment arrangement

File debt collection request with bailiff

Agency

Creditor

How to?

Engage Licensed bailliff to initiate recovery actions

Duration (in Business Days)

3

Laws & Regulations

Agree on a payment plan with debtor via bailiff

Agency

Bailliff

If no agreement is reached, request for seizure of assets (conservatoir beslag) to the court

Agency

Bailiff

How to?

Notice is delivered to plaintiff

Duration (in Business Days)

1

Costs in XCG

50 (court fees) + 20 in stamps

Await summary proceedings for provisional measures

Agency

Court of First Instance

How to?

Receive invitation via email

Costs in XCG

Court fees & counsel

Enter into negotiation of payment options

Agency

Trustee

How to?

Explore possibility of reaching agreement

Duration (in Business Days)

2

Costs in XCG

125

Attend court hearing where request will be reviewed

Agency

Court of First Instance

How to?

Present evidence to decide legal basis

Duration (in Business Days)

1

Debtor may oppose and submit evidence

Agency

Court of First Instance

How to?

File to lift seizure or defend in summary proceedings

Duration (in Business Days)

7

Second session of summary proceedings to review evidence

Agency

Court of First Instance

Duration (in Business Days)

30

Final opportunity for debtor to settle payments

Agency

Bailliff

Duration (in Business Days)

5

If request is approved, bailiff executes the seizure

Agency

Court of First Instance

How to?

Debtor is officially notified of options

Duration (in Business Days)

1

Costs in XCG

5

Execution of judgement

Agency

Trustee

Duration (in Business Days)

20

Bailiff serves seizure order (executoriale beschikking) to debtor

Agency

Trustee

Duration (in Business Days)

10

If multiple creditors attach: court may steer toward suspension of payments or bankruptcy

Agency

Court of First Instance

If necessary, organize public auction

Agency

Trustee

How to?

Trustee will request a notary to organize public auction

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