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.
Basic trades
Debt collection company
Attorney at law
Bailiff
They specialize exclusively in debt collection.
They offer legal advice and representation servicesfor the various branches of law:public(constitutional, administrative, fiscal, criminal, judicial),private(civil, commercial, social, etc.).
They are court officialsin 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 thelist of debt collectors of the FPS economyincludes more than 300 names,there are only about twenty collection companies actively and professionally presentin Belgium.
There are20,000 lawyers in Belgiumand most of them never deal with debt collection.A handful of lawyers specialize in debt collection.
There are a littleover 500 bailiffs in Belgium.
Volumes processed for debt recovery
Debt collection company
Attorney at law
Bailiff
These collectively processover 1 million new receivables each year.
There areno statisticson the number of claims they process.
There areno statisticson 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 theinterests of their clients.
They defend theinterests 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 certainconditionsmust be met in order to collect debts from consumers.The most professional are grouped together in theBelgian 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
TheFederal Public Service Economyregulates the collection companies.(Letters from collection companies must provide the address of this regulatory body.)
The bars regulates solicitors. They are grouped into orders (Dutchspeaking,French and Germanspeaking) .
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)
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.
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.
Basic trades
Debt collection company
Attorney at law
Bailiff
They specialize exclusively in debt collection.
They offer legal advice and representation servicesfor the various branches of law:public(constitutional, administrative, fiscal, criminal, judicial),private(civil, commercial, social, etc.).
They are court officialsin 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 thelist of debt collectors of the FPS economyincludes more than 300 names,there are only about twenty collection companies actively and professionally presentin Belgium.
There are20,000 lawyers in Belgiumand most of them never deal with debt collection.A handful of lawyers specialize in debt collection.
There are a littleover 500 bailiffs in Belgium.
Volumes processed for debt recovery
Debt collection company
Attorney at law
Bailiff
These collectively processover 1 million new receivables each year.
There areno statisticson the number of claims they process.
There areno statisticson 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 theinterests of their clients.
They defend theinterests 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 certainconditionsmust be met in order to collect debts from consumers.The most professional are grouped together in theBelgian 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
TheFederal Public Service Economyregulates the collection companies.(Letters from collection companies must provide the address of this regulatory body.)
The bars regulates solicitors. They are grouped into orders (Dutchspeaking,French and Germanspeaking) .
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)
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.
