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A Debt Recovery Letter is a formal written demand sent to someone who owes you money, giving them a final chance to pay before legal action begins. Under Belgian civil law, this letter (also called a 'mise en demeure' or 'ingebrekestelling') marks an important first step in collecting unpaid debts from customers, clients, or business partners.

The letter must clearly state the amount owed, provide payment details, and set a reasonable deadline - typically 15 days in Belgium. It serves as proof that you've tried to resolve the issue amicably and meets legal requirements before you can start court proceedings or engage a debt collection agency. Sending it by registered mail ('aangetekende zending') helps establish an official record of your collection attempt.

Send a Debt Recovery Letter when an invoice remains unpaid past its due date and informal reminders haven't worked. This formal notice becomes essential after 30-60 days of non-payment, especially for business-to-business transactions under Belgian commercial law. It's particularly important for amounts over €1,500, where court action might become necessary.

Time this letter strategically - too early may harm business relationships, but waiting too long reduces your chances of recovery. Use it when dealing with solvent debtors who simply haven't paid, rather than those facing bankruptcy. For Belgian companies, sending this letter before the end of the fiscal year helps maintain clear accounting records and preserves your legal right to collect the debt.

• Debt Collection Form Letter: Used for standard B2B debt collection, this template follows Belgian commercial code requirements with formal notice language, specific payment terms, and interest calculation details.
• Pre-Legal Notice Letter: A stronger version sent just before legal proceedings, including court fees and lawyer costs warnings under Belgian judicial procedures.
• Amicable Payment Plan Letter: Offers structured repayment options while maintaining legal rights, ideal for preserving business relationships.
• Final Warning Letter: The most severe form, explicitly stating legal action timelines and consequences, including potential seizure of assets.

• Business Owners & Finance Managers: Initiate and oversee the debt recovery process, often drafting the initial Debt Recovery Letter after reviewing unpaid accounts.
• Legal Departments: Review and validate letters to ensure compliance with Belgian debt collection laws and corporate policies.
• Accounts Receivable Staff: Track payment deadlines and prepare documentation for the letters, including payment histories and invoice details.
• Debt Collection Agencies: Often handle the formal delivery and follow-up process once authorized by the creditor.
• Commercial Debtors: Recipients who must respond within the specified timeframe or face potential legal consequences.

• Debt Documentation: Gather all relevant invoices, delivery notes, and previous payment reminders with exact amounts and dates.
• Debtor Details: Confirm the correct legal entity name, registered address, and VAT number for your Belgian debtor.
• Payment History: Document all previous payment attempts, communications, and promises made by the debtor.
• Interest Calculation: Determine applicable legal interest rates under Belgian commercial law from the due date.
• Delivery Method: Prepare for registered mail delivery ('aangetekende zending') to ensure legal proof of receipt.
• Template Selection: Use our platform's Belgian-compliant templates to ensure all mandatory elements are included correctly.

• Formal Notice Declaration: Clear statement that this is a formal debt recovery notice ('mise en demeure'/'ingebrekestelling') under Belgian law.
• Debt Details: Precise amount owed, invoice numbers, dates, and original payment terms.
• Payment Timeline: Specific deadline for payment (minimum 15 days) and acceptable payment methods.
• Interest Statement: Reference to applicable commercial interest rates under Belgian law.
• Legal Consequences: Clear explanation of potential court action and additional costs.
• Identification Elements: Full legal names, addresses, and business numbers of both parties.
• Signature Block: Space for creditor's authorized signature and company details.

A Debt Recovery Letter differs significantly from a Debt Settlement Agreement in both purpose and timing. While both documents deal with unpaid debts, they serve distinct functions in Belgian commercial law.

• Legal Purpose: A Debt Recovery Letter serves as a formal demand for full payment, while a Debt Settlement Agreement outlines negotiated terms for partial payment or modified repayment schedules.
• Timing of Use: Recovery letters come first in the collection process, whereas settlement agreements typically follow after the debtor acknowledges inability to pay in full.
• Binding Nature: Recovery letters are unilateral demands without requiring debtor consent, but settlement agreements need signatures from both parties to be legally binding.
• Payment Terms: Recovery letters demand full payment by a specific date, while settlement agreements often include reduced amounts or installment plans.