Uncontested debt recovery in Belgium: the IOS procedure between businesses

For uncontested invoices between businesses, Belgium offers a fast track that bypasses the courts entirely: uncontested debt recovery, formally the recovery of uncontested monetary debts and known by its Dutch acronym as the IOS procedure (Articles 1394/20 to 1394/27 of the Judicial Code). It has existed since 2016 and, if the debtor fails to respond, it produces an enforceable title without you ever setting foot in a courtroom.

The IOS procedure is cheaper and faster than a summons, but only when it is applied correctly and in the right case. This article explains which debts qualify, how the procedure works, what it costs and when ordinary court proceedings are the better choice.

Which debts qualify for uncontested debt recovery?

The IOS procedure is intended for debts that:

• concern a sum of money;
• are uncontested and due at the time the payment demand is served;
• exist between businesses registered with the Crossroads Bank for Enterprises (Kruispuntbank van Ondernemingen / Banque-Carrefour des Entreprises).

The procedure cannot be used against consumers or public authorities. Nor can it be used in the event of bankruptcy, judicial reorganisation, collective debt settlement or any other form of statutory concurrence of creditors (Article 1394/20 of the Judicial Code). A debtor not registered with the Crossroads Bank, such as a foreign company without a Belgian registration, also falls outside its scope.

In addition to the principal, the payment demand also states the interest and the penalty clause (schadebeding / clause pénale). In this procedure, however, interest and the penalty clause together are capped at 10% of the principal (Article 1394/20 of the Judicial Code). If your general terms and conditions provide for a higher lump sum, you cannot recover the excess through this route, so weigh this up in advance.

How does the IOS procedure work?

1. Your lawyer prepares the file and checks that the conditions are met. It is the creditor’s lawyer who initiates the procedure.
2. A bailiff (gerechtsdeurwaarder / huissier de justice) serves a payment demand on the debtor. Among other things, it sets out a clear description of the obligation, a detailed breakdown of the amounts claimed, a request to pay within one month, the options available to the debtor and the details of both businesses in the Crossroads Bank. A reply form is attached to the payment demand.
3. The debtor has one month to pay, request payment facilities or state the reasons why they dispute the debt, using the reply form attached to the payment demand (Article 1394/22 of the Judicial Code).
4. No response and no payment? No earlier than eight days after that month has expired, the bailiff draws up a record of non-contestation (proces-verbaal van niet-betwisting / procès-verbal de non-contestation). The same applies when an agreed payment arrangement is not complied with.
5. The declaration of enforceability: a magistrate of the management and supervisory committee of the central file of attachment notices (centraal bestand van berichten van beslag) declares the record enforceable (Article 1394/24 of the Judicial Code). You then hold an enforceable title, with which the bailiff can proceed to attachment.

How long does the IOS procedure take and what does it cost?

With a debtor who does not respond, an enforceable title can, at best, be obtained in about two months, considerably faster than defended court proceedings. No hearing is involved.

You advance the bailiff’s costs. If the procedure results in an enforceable title, those costs are added to the debt and recovered from the debtor. We discuss your lawyer’s fees with you transparently and in advance.

What can the debtor still do?

If the debtor disputes the debt in time, the IOS procedure stops and the creditor, if it wishes to continue, must go to court. Even after the record has been declared enforceable, the debtor can still bring a claim before the competent court. The roles are then reversed, however: it is the debtor, not the creditor, who must take the initiative.

When should you use the IOS procedure, and when not?

The IOS procedure is optional: you can always opt for an ordinary summons. It is particularly useful for:

• invoices that were never disputed and whose acceptance is established, for example through an accepted invoice;
• debtors who do not respond or are merely trying to buy time;
• series of smaller invoices for which court proceedings would be too expensive.

A summons (dagvaarding / citation) is often more efficient when your customer has already raised a substantive objection or systematically disputes everything, or when you also want to bring other claims, such as damages or termination of the contract. If your debtor is based abroad, the European procedures often offer a better route. We make this assessment in advance, based on your debtor’s profile.

A practical example

A construction company invoices EUR 4,800 to another business. The invoice is not disputed, but remains unpaid even after a reminder and a formal notice (ingebrekestelling / mise en demeure). The general terms and conditions provide for a penalty clause of 15%, or EUR 720.

In the IOS procedure, interest and the penalty clause together are capped at 10% of the principal, in this case EUR 480. The lawyer prepares the file, the bailiff serves the payment demand and the debtor does not respond within the month. No earlier than eight days later, the record of non-contestation is drawn up, followed by the declaration of enforceability.

With that title, the bailiff attaches the debtor’s bank account. Had the debtor disputed the claim in time, a summons would have been necessary.

Preparation pays off

The success of an IOS procedure is decided before the payment demand is served. Make sure you have a signed quotation or purchase order, invoices with clear due dates, proof of delivery and, where possible, a written acknowledgement of the debt.

A prior formal notice often prompts the debtor to pay and shows you whether the debt is disputed. Do not wait too long either: invoices also become time-barred, and the older the debt, the greater the risk that the debtor has become insolvent in the meantime.

Frequently asked questions

Can I use the IOS procedure against a private individual?

No. It is reserved for debts between businesses. Consumer debts are governed by the rules of Book XIX of the Code of Economic Law and, where necessary, by court proceedings.

My debtor has asked for a payment plan. What now?

A payment arrangement may be granted. If it is not complied with, the procedure can be continued with a record of non-contestation.

What if my debtor is declared bankrupt during the procedure?

The IOS procedure then cannot continue. After a bankruptcy judgment, creditors can, as a rule, no longer enforce individually. They must file their claim in the Central Solvency Register (Regsol), after which the trustee in bankruptcy (curator / curateur) verifies it; see our article on filing a claim. Acting promptly reduces this risk.

My debtor disputes the debt with a vague, general statement. Is the procedure over?

A dispute raised in time stops the IOS procedure in principle: the bailiff will then not draw up a record of non-contestation. We assess the dispute together with you and the bailiff. If it is unfounded, a summons remains possible and the court will then examine the dispute on its merits.

Can I also claim interest and a penalty clause on top of the principal?

Yes, but within the limits of this procedure: interest and the penalty clause together may not exceed 10% of the principal. We calculate in advance exactly how much you can claim. For more on interest and lump-sum compensation for late payment, see our article on late-payment interest and penalty clauses.

Novex Advocaten can help

A stack of uncontested invoices? Mr Mohamed Asfour, lawyer, assesses whether the IOS procedure is the fastest route, prepares the file and follows it through to enforcement. We can assist you in Dutch, French, English and Arabic. See also our overview on recovering unpaid invoices.

Call 0484 99 22 72 or email asfour@novexadvocaten.be.