Unpaid invoices? Crauwels Advocaten will ensure prompt collection!

As a business owner, you unfortunately sometimes have to deal with customers who do not pay their invoices (on time). What steps can you take to collect these overdue payments efficiently? Of course, your first step should be to try to collect your invoices through amicable means. If this proves impossible, you may need to proceed with legal action. Clear terms and conditions are essential, both during the amicable collection phase and, if necessary, in court. You can find more information here. If you have any further questions, please feel free to contact us.

Have you sent an invoice but haven’t received payment? Act quickly. Once the payment deadline has passed, it’s time to send a first reminder. Often, the non-payment is simply an oversight on your customer’s part, and payment will follow shortly after this reminder.

If your customer still fails to pay the outstanding invoice after you have sent the reminder, it is advisable to issue a notice of default. This notice of default is required based on the obligation to act in good faith when performing the agreement. A notice of default is not required only in exceptional cases. For evidentiary reasons, it is best to send your notice of default by certified mail. You can send this notice of default yourself. However, if you want to ensure that everything proceeds correctly and do not wish to handle the administrative follow-up yourself, we are always ready to assist you in this matter. Once again, it is important that you continue to monitor the situation closely.

If payment is still not received after sending the reminder and the registered notice of default, you may choose to initiate an IOS proceeding. This IOS proceeding takes place outside of court and concerns the collection of undisputed monetary debts. Before proceeding with an IOS proceeding, the following conditions must be met: - The debt must be a monetary debt; - These monetary debts are not excluded from the scope of this procedure (e.g., private debts of a business owner who is a natural person, debts owed to a public authority, etc.); - The monetary debts are not disputed by the debtor; - The debt arises from a business-to-business (B2B) relationship; The assistance of an attorney is necessary in this matter, as the attorney must verify that all legal requirements for initiating this procedure have been met. If the IOS procedure can be initiated, a bailiff will be engaged to collect the amount owed.

First, the bailiff will serve a demand for payment on the debtor. This notifies the debtor of all amounts he is required to pay, including costs, interest, liquidated damages, and statutory surcharges. However, the interest and liquidated damages that may be claimed in the context of an IOS proceeding are limited to 10% of the principal amount.

1. The debtor pays the debt, after which the case is closed; 2. The debtor asks the creditor to agree to a payment plan. If you agree to this, the proceedings are suspended. If the payment plan is not followed, the proceedings resume; 3. The debtor submits a substantiated dispute of the debt using the response form that the bailiff attaches to the demand for payment. This halts the IOS proceedings. If you still wish to collect the debt, you will need to sue the debtor in the competent court. 4. The debtor does not respond within 1 month. The bailiff then draws up a statement of non-contestation after 1 month and 8 days. This report is then declared enforceable by a magistrate of the Management and Supervisory Committee. Once this is done, you have an enforceable judgment, and the bailiff can proceed to collect the debt on your behalf.

If the previous steps do not resolve the issue, you will be forced to initiate legal proceedings before the competent court. Crauwels Advocaten will be happy to assist you in this matter. As previously mentioned, well-drafted general terms and conditions are essential for a smooth legal collection process and to prevent any further disputes. They clearly define the rules that apply between you and your client. The terms and conditions may specify, among other things, the delivery period, the payment term, late payment interest, any collection fees, the competent court, and so on, so that your customer knows in advance what measures may be taken if they fail to pay on time. It is important that the general terms and conditions are tailored to your specific business. Only then will your company’s legal position be optimally protected. Please do not hesitate to contact us to draft, revise, and update your general terms and conditions. Crauwels Advocaten would be happy to partner with you in collecting your unpaid invoices. Please feel free to contact us.