Legal Measures for Debt Collection in Holland

According to research, unpaid invoices are the reason behind 30% of all bankruptcies in Holland, or the Netherlands. If you have a Dutch debtor who has not yet paid, seeking assistance from one of the many companies that are currently offering debt collection services in Holland could ensure a maximum return at minimal expense.

Such a company will try to recover your debt through conservatory arrest (garnishee) or a similar order, deeds of arrangement, insolvency proceedings, and/or summary proceedings, where appropriate. When extrajudicial actions do not succeed in leading to payment of the claim, appropriate legal action is then taken and legal proceedings are initiated.

What legal measures can be taken to collect debts in Holland? If the amicable phase has not succeeded, then the debt collection company assisting you is likely to advise you to take into consideration other legal measures. Dutch law claims that debts can be legally collected from debtors if creditors file a petition for bankruptcy; obtain a title of enforcement, whether by an exequatur, or through ordinary proceedings or summary proceedings; or use a legal method of enforcement.

You will be advised to consider a summary proceeding in a situation where your debtor has no justifiable reasons to provide you for not paying the money owed. The Dutch District Court serves as the venue for the court hearings. A bailiff summons the debtor and it takes nearly 2 weeks for the entire procedure to complete.

A petition for bankruptcy can be filed by the plaintiff, but only the court can declare insolvency. However, the Dutch District Court will only consider this type of petition if the same debtor owes money to at least one other debtor, other than you.

The amount of debt that is owed will determine the cost of debt collection, including the court fees. When it comes to undisputed debts, debt collection companies generally agree to a no win-no fee arrangement. While a fixed or hourly fee is collected in the case of disputed debts, part of the legal costs can be recovered from the debtor, but the court determines the amount.

Once the collection procedure has started, a company offering debt collection services in Holland will check the information you provide to them. If they find the information sufficient, they will proceed by utilizing an established combination of methods, and once those do not succeed, they proceed to taking legal measures like the ones mentioned above.