Debt Collection in the Netherlands
An unpaid invoice is rarely only a cash flow problem. It usually signals a dispute about the agreement, a debtor in difficulty, or a party that sees no urgency in paying. Dutch law offers a structured route out of that situation, from a formal notice of default to proceedings, attachment of assets and enforcement by a bailiff.
When to involve a lawyer instead of a collection agency
A collection agency can send reminders and negotiate a payment arrangement, which is often enough where the debt is not in dispute. An agency cannot issue proceedings, apply for leave to levy prejudgment attachment, or appear before the court. Where the debtor raises a defence, or where you suspect assets are being moved out of reach, the matter needs a lawyer from the outset.
The demand letter (ingebrekestelling) and when default arises
A debtor is not automatically in default merely because payment has not arrived. Article 6:81 of the Dutch Civil Code (BW) describes default as the position the debtor is in once performance has failed and the statutory requirements are met. As a rule, article 6:82 BW requires a written notice allowing a reasonable period for performance; only once that period passes without payment does default arise, and with it the right to statutory interest and to damages for late performance.
Article 6:83 BW sets out situations in which default arises without any notice, for example where a fixed period for performance was agreed and has expired, or where the debtor has made clear that he will not perform. A sound demand letter identifies the agreement and the invoices, states the sum due, sets a reasonable period and announces the consequences of non-payment.
Statutory commercial interest and extrajudicial collection costs
Where the claim arises from a commercial contract between businesses or with a public authority, article 6:119a BW provides for statutory commercial interest, which is higher than the ordinary statutory interest applying in consumer relationships. The rate follows, under article 6:120 BW, from the refinancing rate of the European Central Bank increased by eight percentage points.
Article 6:96 BW allows recovery of reasonable costs incurred in obtaining satisfaction out of court. For most claims the amount is fixed by the Decree on compensation for extrajudicial collection costs (Besluit vergoeding voor buitengerechtelijke incassokosten), which applies a sliding scale to the principal sum: the percentage applied decreases as the principal rises, subject to a statutory minimum and maximum.
Court proceedings: the subdistrict court and the district court
Jurisdiction depends on the value and nature of the claim. Money claims up to a statutory threshold, and employment, tenancy and consumer matters regardless of value, are heard by the subdistrict court (kantonrechter), where a party may appear without a lawyer. Claims above that threshold go to the district court (rechtbank), where representation by a Dutch lawyer is mandatory. Proceedings begin with a writ of summons served by a bailiff; the debtor may file a defence, after which the court usually lists a hearing.
Summary proceedings (kort geding) for urgent claims
Where the matter cannot wait for proceedings on the merits, the interim relief judge (voorzieningenrechter) may be asked for a provisional order. For a money claim this is realistic only where the claim is sufficiently clear, where there is a genuine urgent interest and where the risk of non-recovery has been weighed. The order is provisional and does not settle the dispute definitively.
Prejudgment attachment (conservatoir beslag) to secure your claim
A judgment is of limited value against a debtor with no assets left. Dutch law therefore allows a creditor, before or during proceedings, to apply to the interim relief judge for leave to levy prejudgment attachment under article 700 of the Code of Civil Procedure (Rv). The application is made by a lawyer, usually without the debtor being heard. If leave is granted, the court fixes a period within which proceedings on the merits must be issued, failing which the attachment lapses.
Attachment can be levied on bank balances, receivables owed to the debtor by third parties, immovable property, shares and stock. It does not transfer ownership; it freezes the asset so that it remains available once judgment is obtained.
Enforcement and the role of the bailiff (deurwaarder)
A judgment becomes enforceable once served on the debtor by a bailiff. From that point the bailiff may levy executory attachment on wages, bank accounts, movable or immovable property, and may proceed to sale where payment still fails to follow. Any prejudgment attachment already in place converts into executory attachment.
Cross-border claims and the European Payment Order
Where your debtor is established in another EU Member State, European rules determine which court has jurisdiction, which law governs the contract and how a judgment is recognised elsewhere in the Union.
For uncontested money claims across borders, a European Payment Order offers a simplified route. The creditor applies using standard forms; if the application meets the requirements, the court issues an order which is served on the debtor. The debtor may lodge a statement of opposition within the period allowed, in which case the matter continues as ordinary proceedings. Absent opposition, the order is declared enforceable and can be enforced in other Member States.
Filing a bankruptcy petition as a pressure instrument
Article 1 of the Dutch Bankruptcy Act (Faillissementswet) allows a creditor to petition for the bankruptcy of a debtor who has ceased to pay. The petition must show the petitioning creditor’s claim and, in addition, that at least one other creditor remains unpaid. Under article 6 Fw the court applies a summary test, which means a genuinely disputed claim is unsuitable for this route. Our bankruptcy lawyers assess whether a petition is justified and what it is likely to achieve.
Disputed claims: when the debtor raises a defence
Debtors frequently answer a demand with a complaint about the goods or services delivered, an appeal to general terms and conditions, or a set-off against a counterclaim. The question is then no longer how to apply pressure but whether the claim can be proved, and on whom the burden of proof rests. The documentation becomes decisive: the contract, the order confirmation, whether the applicable terms were validly incorporated, delivery records and contemporaneous complaints. These questions sit at the intersection of contract law and corporate law in the Netherlands.
Costs and fee arrangements
The first introductory conversation is free of charge. If you instruct us, we work on an hourly basis, and the work to be carried out in each phase is discussed with you in advance, so you decide at each stage whether the next step is worthwhile.
Part of your costs may be recovered from the debtor: statutory interest, extrajudicial collection costs under article 6:96 BW and, in proceedings, an order for costs against the losing party can each contribute. How much is actually collected depends on the outcome and on the debtor’s ability to pay, so it cannot be stated in advance. We do not make fixed-price arrangements, and our fee is not made dependent on the result; the professional rules applicable to Dutch lawyers do not permit that, and we give no guarantee as to outcome.
Frequently asked questions
Must I always send a demand letter before claiming interest?
As a rule yes, because article 6:82 BW requires a written notice allowing a reasonable period for performance. Article 6:83 BW provides exceptions, for instance where a fixed payment deadline was agreed and has passed.
What is a reasonable period in a notice of default?
The law does not fix one. It depends on the nature of the obligation, the relationship between the parties and what the debtor needs in order to pay. A period that is too short may be treated as no valid notice at all.
Can I recover my full legal costs from the debtor?
Rarely in full. Extrajudicial costs are capped by the statutory scale, and an order for costs in proceedings is calculated according to fixed court rates rather than the fee actually incurred.
My debtor is in another EU country. Where do I sue?
Jurisdiction follows from European rules and from any choice of forum in your contract.
The debtor disputes the invoice. Is collection still possible?
Yes, but the route changes. A disputed claim is unsuitable for summary proceedings or a bankruptcy petition and will normally be brought before the court on the merits.
Speak to a business lawyer about an unpaid invoice
If an invoice has gone unpaid and reminders have not helped, a conversation with a business lawyer will tell you where you stand and which of the routes above fits your situation. We handle collection files for businesses from the first notice of default through attachment, proceedings and enforcement, including cross-border matters.
- Telephone: +31 40 369 06 80
- E-mail: info@lawandmore.nl
- Head office in Eindhoven, with a meeting location in Amsterdam
- We act for clients across the whole of the Netherlands
- We advise and litigate in Dutch and in English
