Debt Collection and Recovery of Claims: From Formal Notice to Enforcement

Unpaid invoices are one of the greatest frustrations for business owners. You have delivered, but payment fails to materialise. A friendly reminder is no longer sufficient. What now? A targeted legal approach – from formal notice to attachment – makes the difference between an uncollectable claim and actual payment.

The Pre-litigation Phase: Formal Notice

The collection process begins with a professional formal notice from a lawyer. This is more than a reminder: it is a formal notice of default in accordance with Article 6:82 of the Dutch Civil Code. In the notice, we place the debtor in default, demand payment within fourteen days and announce legal proceedings if payment is not forthcoming.

The impact of a lawyer's formal notice is considerably greater than a reminder sent by the creditor. The debtor knows that legal action will follow and that costs are mounting. In practice, a lawyer's formal notice leads to direct payment or a payment arrangement in approximately 40% of cases.

Importantly, in the formal notice we also claim the extrajudicial collection costs in accordance with the Dutch Decree on Compensation for Extrajudicial Collection Costs (BIK). These costs are calculated on the principal sum and are borne entirely by the debtor.

Prejudgment Attachment: Security in Advance

If the debtor fails to pay following the formal notice and there is a risk of asset dissipation, prejudgment attachment (conservatoir beslag) is the weapon of choice. Through an application to the preliminary relief judge, we seek permission to levy attachment on:

• Bank accounts: The most effective pressure tool. The account is frozen up to the amount of the claim.
• Real estate: The property cannot be sold or encumbered for as long as the attachment remains in place.
• Third-party attachment: Attachment against customers or clients of the debtor on amounts they owe to the debtor.
• Movable assets: Attachment on inventory, vehicles or stock.

The application is typically dealt with within a few days (sometimes even the same day). The debtor is not informed in advance – the attachment comes as a surprise. This is intentional: it prevents the debtor from moving their assets.

Court Proceedings: Writ of Summons

After levying attachment, proceedings on the merits (the so-called eis in de hoofdzaak) must be commenced within fourteen days. But even without attachment, the writ of summons is the natural follow-up to an unanswered formal notice.

In the writ of summons, we claim:

• Payment of the principal sum (the outstanding invoices)
• Statutory (commercial) interest from the due date
• Extrajudicial collection costs
• Litigation costs (court fees, lawyer's fees, bailiff costs)

If the debtor fails to appear in proceedings, a default judgment follows: the court will in principle award the claim in full. This judgment is typically obtained within four to six weeks.

Enforcement: Turning the Judgment into Payment

A judgment is only worth something if it is enforced. After service of the judgment by the bailiff, the debtor has two days to pay voluntarily. If they fail to do so, we proceed to enforcement:

• Enforcement attachment on bank accounts: The bailiff collects the amount directly from the debtor's bank.
• Enforcement third-party attachment: The debtor's own debtors pay directly to you.
• Enforcement sale: Movable or immovable assets of the debtor are sold at public auction.
• Committal (lijfsdwang): In exceptional cases, the court may authorise committal (detention) if the debtor refuses to pay despite being able to do so.

Statutory Commercial Interest

In commercial transactions (B2B), statutory commercial interest applies. This rate is considerably higher than the standard statutory interest rate and currently amounts to approximately 12.5% per annum. Interest accrues from the due date of the invoice until the date of full payment. For long-outstanding claims, the interest can represent a substantial sum – an additional incentive for the debtor to pay promptly.

Limitation: Do Not Wait Too Long

Claims are subject to limitation. The standard limitation period for commercial claims is five years (Article 3:307 DCC). After limitation, you can no longer enforce your claim through the courts. It is therefore essential to take timely action. A formal notice or acknowledgement by the debtor interrupts the limitation period, after which a new period begins to run.

Why Kasteelmeester for Your Debt Collection?

Mr. Vulto combines legal precision with commercial thinking. The objective is not to litigate for the sake of litigation – the objective is to recover your money. We assess the recovery prospects in advance: does the debtor have assets against which we can enforce? If so, we deploy the full arsenal. If not, we advise you honestly about the risks and alternative routes, such as a payment arrangement or a strategic insolvency petition.