Overindebted individuals

=== Collection agency and the bailiff === The first step of knowing you are in debt is the reminder. This is a letter in which the creditor lets the debtor know he still needs to make his payment. If the creditor directly wants to start a legal procedure, he still needs to let the other party know about the legal procedure, this is called ‘notice of default. This letter can be sent by the creditor, a collection agency, a bailiff or a lawyer.

When someone forgets to pay a bill, it happens that the creditor uses a collection agency of bailiff to collect the money for the payment. This agency is a private enterprise, so they do not have a connection with the court, but have to be registered by the government. The collection agency writes a rather severe letter to demand the payment, the bailiff has a reminder for direct payment of the debt. It is completely legal that a company uses a collection agency to demand payments, yet the powers of the agency are limited. They do not have the right to collect your furniture of start a legal procedure against the debtor. So the most used option is to write a letter in bad or harsh language. Fifteen days after letting the debtor know he is in debt; the collection agency can make a visit at the debtor’s house. He is not obligated to let the agency worker in his house. So the collection agency demands the payment by sending letters, making phone calls or house visits. The second option is the bailiff. This is a public official, yet he can still perform outside a legal procedure. He has more power than the collection agency, because he can seize some possessions and sign subpoenas. Yet this is only possible on the base of a verdict from the judge, a notarial deed or an order from the tax administration. Even then, a code has set some limits on what the bailiff can take, and which part of the furniture he has no right to take away. Lastly, the lawyer can also demand the payment of the debt. He will send a reminder, before starting a legal procedure. He is the only one to assist and represent in a legal procedure.

It is very important to react, as a debtor, to these reminders. When you do not agree, you should protest against the reminder. Even if you do not pay temporary, because of small setback in your financial status, it is possible that the payment increase (Vlaams Centrum Schuldenbemiddeling, p.7-10).