What is an out-of-court debt collection process?
An out-of-court collection process — also known as an amicable collection process — is the collection process in which an outstanding debt is recovered without the intervention of a judge. It involves no summons, no hearing, and no judgment.
It is always the first step in a debt collection process. Most claims are resolved at this stage: the
debtor pays up, a payment arrangement is made, or the parties reach a settlement. Only when the out-of-court process yields no results is the step to court considered.
How does the out-of-court debt collection process work?
The process consists of a fixed sequence of steps that exert increasing pressure on the debtor.
First, a demand letter. MKBjuristen sends
a legally strong demand letter to the debtor on your behalf. It states the outstanding amount, the payment term—in practice often three to five working days—and the announcement of further legal action if payment is not received. The claim has already been increased in the letter by statutory interest and extrajudicial collection costs. A letter from a specialized legal firm makes
a greater impression than a letter from an ordinary collection agency.
Secondly, contact with the debtor. If the debtor does not respond to the demand letter, we make telephone
contact. We assess whether there is a substantive defense or if the debtor simply does not want to or cannot pay. Based on this, we determine the next step.
Thirdly, a second demand letter or escalation. If the debtor does not respond or refuses to pay, a second letter follows with a shorter deadline and a clear announcement of legal action.
In many cases, this is the moment when the debtor pays after all — the threat of proceedings is
effective.
Fourth, a payment arrangement or settlement. If the debtor is unable
to pay the full amount at once, we negotiate a payment arrangement and record it as legally binding.
What does the out-of-court debt collection process cost?
For undisputed claims between €1,500 and €25,000, we work on a no cure no pay basis. You only pay upon a result. The extrajudicial collection costs are recovered from the debtor in accordance with the Collection Costs Act (WIK scale): a minimum of €40 and a maximum of €6,775, calculated as a declining percentage of the principal amount.
If the debtor disputes the substance of the claim, this is no
longer a standard out-of-court collection process but a legal dispute. In that case, we will discuss a fixed price for the guidance.
When do you switch to legal proceedings?
If the out-of-court process — averaging 45 days — yields no result, we will discuss with you whether legal proceedings would be worthwhile. This depends on three factors: the strength of your evidence, the amount of the claim, and the debtor's ability to recover the debt.
We first conduct an asset tracing investigation if there is reason to do so.
After all, litigating against a debtor who offers no assets to seize is costly and pointless. If litigation is deemed advisable, we engage a
specialized lawyer to draft the summons and conduct the proceedings.
Benefits of the out-of-court process
The out-of-court process is faster and cheaper than legal proceedings. There are no
court fees and no bailiff costs. The client relationship is damaged less than in legal proceedings. And if it does come to proceedings, the case file has already been fully built up.
