On May 14, BEL PRL adopted new law to protect those in difficulty.
BEL PRL published an final adopted version of bill containing measures to combat excessive debt, which are also designed to help process for companies in difficulty.
Bill Overview
The main idea is to prevent people who are already experiencing financial difficulties from facing legal proceedings, associated legal costs, and possible enforcement costs.
Debts that cannot be collected due to temporary or structural financial problems must be detected as quickly as possible and if there is already a debt mediator, then this person must be contacted in writing so that the debt is integrated to a clearance plan.
In order to enable early detection of payment difficulties, this draft provides for the addition of new messages in the Central File of notices of seizure, delegation, transfer, collective debt settlement and protest (CBB) and systematic prior check before action.
Information regarding judicial reorganization or bankruptcy proceedings or transfer under a judicial authority will also be available for reference in the CBB, as a resource.
This would help prevent action by bailiff with a view to initiating a form of judicial or extrajudicial collection procedure, or process of an attachment procedure on goods.
Finally, procedures for common attachment and for attachment by comparison and extension are improved and their extensive use is envisaged, in order to avoid various unnecessary costs as well as succession of movable attachments by several bailiffs.
The aim of this design is to optimize and digitize communication between the seizing bailiffs and to clarify these procedures, so that they all become more understandable.
The legislation also includes a requirement for mandatory training for judicial officers in communication and facilitation skills, to place more emphasis on amicable solutions.
Next Steps
Final text was adopted by BEL PRL on May 8, 2024, will be submitted for royal assent.
Law on measures to combat over-indebtedness and to protect companies in difficulty.
Articles 3, 2°, 4, 1° and 2°, and 7 to 13 shall enter into force one year after the day on which this law is published in the Belgian official gazette, on Jul. 2, 2024.
Articles 2, 4, 3° and 4°, 6 and 14 to 16 shall enter into force on the first day of the third month following publication in the Belgian official gazette, on Oct. 1, 2024.
