DEBT COLLECTOR – LAWYER – BAILIFF: SIMILARITIES AND DIFFERENCES

There are three categories of professionals who can help you when you are owed money: debt collectors, lawyers and bailiffs. How are their services similar, how are they different? This article focuses on Belgium.

Note: The terms “Lawyer” and Attorney at Law” in this text refer to a registered practising lawyer.

Debt collector Attorney Bailiff comparison

 

Basic trades

Debt collection company Attorney at law Bailiff
They specialize exclusively in debt collection. They offer legal advice and representation services for the various branches of law: public (constitutional, administrative, fiscal, criminal, judicial), private (civil, commercial, social, etc.). They are court officials in the sense that they serve summons, execute judgements, etc., at the request of lawyers or even at direct request from creditors.

 

Services offered

Debt collection company Attorney at law Bailiff
They mainly offer amicable recovery (outside the courts) but assist their clients, if they so wish, in the supervision of debts which go to court when the debtor does not want to pay despite appearing to be solvent (+ – 1% of receivables).

They are the only ones able to represent a litigant before the courts. This is their monopoly (except that the litigant can always represent himself, which is rare and generally not recommended).

 

Debt collection is only one of multiple services offered.

They are the communication link, the intermediaries between the courts and the litigants. These tasks are reserved for them by law (it is their monopoly).

 

For more than 20 years, bailiffs have developed an amicable collection service (out of courts), mainly to boost their judicial collection activity.

 

Number of active companies

Debt collection company Attorney at law Bailiff
Even if the list of debt collectors of the FPS economy includes more than 300 names, there are only about twenty collection companies actively and professionally present in Belgium.

There are 20,000 lawyers in Belgium and most of them never deal with debt collection.

A handful of lawyers specialize in debt collection.

There are a little over 500 bailiffs in Belgium.

 

Volumes processed for debt recovery

Debt collection company Attorney at law Bailiff
These collectively process over 1 million new receivables each year. There are no statistics on the number of claims they process. There are no statistics on the number of claims they process.

 

Privately owned enterprise

Debt collection company Attorney at law Bailiff
Yes Yes Yes (unlike the situation in many European and other countries, where they are civil servants).

 

For profit enterprise

Debt collection company Attorney at law Bailiff
Yes Yes Yes

 

Impartiality

Debt collection company Attorney at law Bailiff
They defend the interests of their clients. They defend the interests of their clients. The law considers them impartial. However, they are paid by their clients (creditors), which may make the reality different from the theory due to conflicts of interest.

 

Access to the profession

Debt collection company Attorney at law Bailiff

There is no specific qualification required, but certain conditions must be met in order to collect debts from consumers.

 

The most professional are grouped together in the Belgian Debt Collectors Association.

A master’s degree in law is required.

 

In addition, a lawyer must be registered with a “bar“.

A master’s degree in law is required.

 

Bailiffs are “ministerial officers” appointed by the King and their number is limited.

 

 

Regulator

Debt collection company Attorney at law Bailiff

The Federal Public Service Economy regulates the collection companies.

 

(Letters from collection companies must provide the address of this regulatory body.)

The bars regulates solicitors. They are grouped into orders (Dutch speaking, French and German speaking) .

 

The National Chamber of Bailiffs regulates bailiffs.

 

Independent regulator

Debt collection company Attorney at law Bailiff
Yes (PFS Economy)

No (by peers)

 

In recent years, it has been suggested (draft law) that the PFS Economy should also be able to regulate the activities of attorneys at law related to amicable collection, as is done for collection agencies.

No (by peers)

 

In recent years, it has been suggested (draft law)  that the PFS Economy should also be able to regulate the activities of bailiffs related to amicable collection, as is done for collection agencies.

 

Code of conduct

Debt collection company Attorney at law Bailiff
Yes, for members of the Belgian Collectors Association. Yes Yes

 

Applicable laws for amicable debt collection (outside the courts)

Debt collection company Attorney at law Bailiff
Yes, in particular the law of 2002 on the amicable recovery of consumer debts. Yes, in particular the law of 2002 on the amicable recovery of consumer debts ; with the exception of regulation authority. Yes, in particular the law of 2002 on the amicable recovery of consumer debts ; with the exception of regulation authority.

 

Cost for the creditor of amicable debt collection (outside the courts)

Debt collection company Attorney at law Bailiff
Usually: no-cure-no-charge (commission on amounts collected). Usually: an hourly rate + costs, coupled with a commission on the result. (No-cure-no-charge prohibited by ethics.) Usually: no-cure-no-charge (commission on amounts collected).

 

 

Cost to the creditor of judicial debt collection (in court)

Debt collection company Attorney at law Bailiff
None (not applicable)

Usually: an hourly rate + costs, coupled with a commission on the result.

 

The condemned (and solvent) debtor must pay “processing compensation” to the creditor.

Public Order priced service (prices invariable by law).

 

However, the condemned (and solvent) debtor must repay these costs.

 

If the debtor is not convicted, the bailiff’s fees must be paid by the creditor (by law).

 

Cost for the debtor of out-of-court debt collection

Debt collection company Attorney at law Bailiff

None.

(Interest and indemnities, as defined by law or by the contract between the debtor and the creditor, accrue to the creditor.)

None.

(Interest and indemnities, as defined by law or by the contract between the debtor and the creditor, accrue to the creditor.)

None.

(Interest and indemnities, as defined by law or by the contract between the debtor and the creditor, accrue to the creditor.)

 

Cost to the debtor of judicial debt collection (in court)

Debt collection company Attorney at law Bailiff
None (not applicable) A processing compensation (if debtor is condemned). Bailiff fees (set by law; if debtor is condemned).

 

Added value of the different solutions

Debt collection company Attorney at law Bailiff
Promotes a quick and smooth solution for both the debtor and the creditor. Resolves 99% of cases at a lower cost. Required for legal action. More contentious. Required for legal action. Most contentious.

 

See also our article on no cure no pay.

 

21 September 2021

DEBT COLLECTOR – LAWYER – BAILIFF: SIMILARITIES AND DIFFERENCES

There are three categories of professionals who can help you when you are owed money: debt collectors, lawyers and bailiffs. How are their services similar, how are they different? This article focuses on Belgium.

Note: The terms “Lawyer” and Attorney at Law” in this text refer to a registered practising lawyer.

Debt collector Attorney Bailiff comparison

 

Basic trades

Debt collection company Attorney at law Bailiff
They specialize exclusively in debt collection. They offer legal advice and representation services for the various branches of law: public (constitutional, administrative, fiscal, criminal, judicial), private (civil, commercial, social, etc.). They are court officials in the sense that they serve summons, execute judgements, etc., at the request of lawyers or even at direct request from creditors.

 

Services offered

Debt collection company Attorney at law Bailiff
They mainly offer amicable recovery (outside the courts) but assist their clients, if they so wish, in the supervision of debts which go to court when the debtor does not want to pay despite appearing to be solvent (+ – 1% of receivables).

They are the only ones able to represent a litigant before the courts. This is their monopoly (except that the litigant can always represent himself, which is rare and generally not recommended).

 

Debt collection is only one of multiple services offered.

They are the communication link, the intermediaries between the courts and the litigants. These tasks are reserved for them by law (it is their monopoly).

 

For more than 20 years, bailiffs have developed an amicable collection service (out of courts), mainly to boost their judicial collection activity.

 

Number of active companies

Debt collection company Attorney at law Bailiff
Even if the list of debt collectors of the FPS economy includes more than 300 names, there are only about twenty collection companies actively and professionally present in Belgium.

There are 20,000 lawyers in Belgium and most of them never deal with debt collection.

A handful of lawyers specialize in debt collection.

There are a little over 500 bailiffs in Belgium.

 

Volumes processed for debt recovery

Debt collection company Attorney at law Bailiff
These collectively process over 1 million new receivables each year. There are no statistics on the number of claims they process. There are no statistics on the number of claims they process.

 

Privately owned enterprise

Debt collection company Attorney at law Bailiff
Yes Yes Yes (unlike the situation in many European and other countries, where they are civil servants).

 

For profit enterprise

Debt collection company Attorney at law Bailiff
Yes Yes Yes

 

Impartiality

Debt collection company Attorney at law Bailiff
They defend the interests of their clients. They defend the interests of their clients. The law considers them impartial. However, they are paid by their clients (creditors), which may make the reality different from the theory due to conflicts of interest.

 

Access to the profession

Debt collection company Attorney at law Bailiff

There is no specific qualification required, but certain conditions must be met in order to collect debts from consumers.

 

The most professional are grouped together in the Belgian Debt Collectors Association.

A master’s degree in law is required.

 

In addition, a lawyer must be registered with a “bar“.

A master’s degree in law is required.

 

Bailiffs are “ministerial officers” appointed by the King and their number is limited.

 

 

Regulator

Debt collection company Attorney at law Bailiff

The Federal Public Service Economy regulates the collection companies.

 

(Letters from collection companies must provide the address of this regulatory body.)

The bars regulates solicitors. They are grouped into orders (Dutch speaking, French and German speaking) .

 

The National Chamber of Bailiffs regulates bailiffs.

 

Independent regulator

Debt collection company Attorney at law Bailiff
Yes (PFS Economy)

No (by peers)

 

In recent years, it has been suggested (draft law) that the PFS Economy should also be able to regulate the activities of attorneys at law related to amicable collection, as is done for collection agencies.

No (by peers)

 

In recent years, it has been suggested (draft law)  that the PFS Economy should also be able to regulate the activities of bailiffs related to amicable collection, as is done for collection agencies.

 

Code of conduct

Debt collection company Attorney at law Bailiff
Yes, for members of the Belgian Collectors Association. Yes Yes

 

Applicable laws for amicable debt collection (outside the courts)

Debt collection company Attorney at law Bailiff
Yes, in particular the law of 2002 on the amicable recovery of consumer debts. Yes, in particular the law of 2002 on the amicable recovery of consumer debts ; with the exception of regulation authority. Yes, in particular the law of 2002 on the amicable recovery of consumer debts ; with the exception of regulation authority.

 

Cost for the creditor of amicable debt collection (outside the courts)

Debt collection company Attorney at law Bailiff
Usually: no-cure-no-charge (commission on amounts collected). Usually: an hourly rate + costs, coupled with a commission on the result. (No-cure-no-charge prohibited by ethics.) Usually: no-cure-no-charge (commission on amounts collected).

 

 

Cost to the creditor of judicial debt collection (in court)

Debt collection company Attorney at law Bailiff
None (not applicable)

Usually: an hourly rate + costs, coupled with a commission on the result.

 

The condemned (and solvent) debtor must pay “processing compensation” to the creditor.

Public Order priced service (prices invariable by law).

 

However, the condemned (and solvent) debtor must repay these costs.

 

If the debtor is not convicted, the bailiff’s fees must be paid by the creditor (by law).

 

Cost for the debtor of out-of-court debt collection

Debt collection company Attorney at law Bailiff

None.

(Interest and indemnities, as defined by law or by the contract between the debtor and the creditor, accrue to the creditor.)

None.

(Interest and indemnities, as defined by law or by the contract between the debtor and the creditor, accrue to the creditor.)

None.

(Interest and indemnities, as defined by law or by the contract between the debtor and the creditor, accrue to the creditor.)

 

Cost to the debtor of judicial debt collection (in court)

Debt collection company Attorney at law Bailiff
None (not applicable) A processing compensation (if debtor is condemned). Bailiff fees (set by law; if debtor is condemned).

 

Added value of the different solutions

Debt collection company Attorney at law Bailiff
Promotes a quick and smooth solution for both the debtor and the creditor. Resolves 99% of cases at a lower cost. Required for legal action. More contentious. Required for legal action. Most contentious.

 

See also our article on no cure no pay.

 

21 September 2021

Don’t wait another second – collect your money

Focus on your business, we’ll take care of your outstanding payments. Contact us to find out more.

Don’t wait another second – collect your money

Focus on your business, we’ll take care of your outstanding payments. Contact us to find out more.