Excessive Debt Burden Act: Significant changes

The aim is to help debtors with a heavy debt burden regain control of their financial situation while fairly compensating creditors without confronting debtors with excessive additional costs.

Role of the Bailiff and Amicable Solutions

The legislator’s intention is, among other things, to assign the role of facilitator to the bailiff in their actions towards the debtor. The bailiff will have to fully fulfill their role as mediator to help the debtor out of the debt spiral and limit the costs that their actions entail.

The bailiff will always have to prioritize an amicable solution, even in the judicial phase.

This is made possible, among other things, by correctly filling out an information sheet that will be attached to each act aimed at the payment of a sum of money, listing the solutions that make it possible for the debtor to restore their financial situation or obtain a payment plan.

Execution Procedure and Payment Plan

In the execution procedure, joint seizure will be the rule. This means that when a previous seizure has already been made against a debtor by another bailiff, this seizure will serve as the main seizure on which all subsequent execution procedures will have to be based. This main seizure will therefore have to be sufficiently broad to provide for the execution of other potential claims.

Only in certain cases will a new seizure be possible, a so-called seizure by comparison and extension. This is possible, for example, when it is found that the debtor has new assets after the main seizure, when it appears that certain assets were not seized by the previous bailiff, or when it appears that the assets included in the main seizure have decreased in value.

Payment plans will always have to be confirmed in writing to the debtor. In addition, there are strict rules regarding payment reminders.

It is important to mention that the client will be asked whether they agree with the proposed payment plan. If the client does not agree with payment facilities – despite the solvency screening and the role of the bailiff as facilitator – the client will in principle bear the responsibility. There are indeed strict disciplinary and civil consequences for the bailiff associated with a payment plan.

The bailiff will – even if the client does not agree with payment facilities – always have to pay the necessary attention to the proportionality of the execution procedure.

Deficit judicial sales – i.e., sales that do not generate sufficient revenue to cover the costs – have been prohibited since July 10, 2024.

Our PKF BOFIDI Legal colleagues are happy to assist you

It will be (even) more difficult for creditors to recover outstanding debts in certain cases, while debtors will be better protected against rising additional costs when collecting debts. Acting in time (the right contracts and conditions) and reacting (collecting on time and promptly) remains the message.

Do you have questions about this law and its applications? Contact our legal experts, they will be happy to assist you.