{"id":69221,"date":"2018-01-08T11:11:24","date_gmt":"2018-01-08T10:11:24","guid":{"rendered":"https:\/\/tcm.be\/glossarium\/assignment-of-debt-claim\/"},"modified":"2026-01-14T23:21:54","modified_gmt":"2026-01-14T22:21:54","slug":"assignment-of-debt-claim","status":"publish","type":"glossarium","link":"https:\/\/tcm.be\/en\/glossarium-en\/assignment-of-debt-claim\/","title":{"rendered":"Assignment of debt claim"},"content":{"rendered":"\n<h1 class=\"wp-block-heading\">Assignment of a debt claim<\/h1>\n\n\n\n<p>The <strong>assignment of a debt claim<\/strong> is the mechanism by which a <a href=\"https:\/\/tcm.be\/en\/creditor-definition\/\">creditor<\/a> (the assignor) assigns to a third party (the assignee) a <a href=\"https:\/\/tcm.be\/en\/receivable\/\">claim<\/a> , of which they are the holder, with regards to their <a href=\"https:\/\/tcm.be\/en\/debtor-definition\/\">debtor<\/a> (the assigned).<br><br>Many examples in our private relationships with banks involve this mechanism, such as:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>For a <strong>mortgage loan<\/strong><\/li>\n\n\n\n<li>For <strong>issuing a credit card<\/strong><\/li>\n\n\n\n<li>For a <strong>financing loan<\/strong><\/li>\n\n\n\n<li>For <strong>signing a lease<\/strong><\/li>\n<\/ul>\n\n\n\n<p>In most of these cases, the <strong>banker<\/strong> (the assignee) will ask the client (the assignor) to transfer <strong>claims<\/strong> they hold with regards to a third party (the assigned).<br><br>The most common example of this mechanism is the <strong>salary assignment<\/strong> . By doing that, the <strong>banker<\/strong> obtains collateral in case of negligence on the part of their <strong>debtor<\/strong> . They can use the <strong>assignment mechanism<\/strong> to directly obtain reimbursement from their <strong>debtor\u2019s<\/strong> <strong>employer<\/strong>.<br><br>In terms of <strong>debt collection<\/strong> , the <strong>assignment of debt claims<\/strong> is a very useful mechanism.<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Debt collection<\/strong> is generally processed based on a mandate, where the <strong>creditor<\/strong> asks the collector to obtain payment from the <strong>debtor<\/strong>. In such scheme, the <strong>creditor<\/strong> remains the owner of its <strong>debt claim<\/strong> throughout the process.<\/li>\n\n\n\n<li>However, certain companies want to close out their accounts <strong>receivable<\/strong> before all of the <strong>debt claims<\/strong> are actually paid. They agree on a price with a <strong>collection company<\/strong> and sell their <strong>debt claims<\/strong>. The new owner of the <strong>debt claim<\/strong> may then collect what can be collected for their own account.<\/li>\n<\/ul>\n\n\n\n<p>The <strong>assignment of debt claims<\/strong> is only done for large volumes of <strong>debt claims<\/strong>. It is necessary for the debt claim buyer to be able to assess the chances of recovery based on statistics. Buying only one or a few claims is placing a bet. Buying thousands of claims is statistical work.<\/p>\n\n\n\n<p>Definitions provided under this section refer to the Belgian situation; unless specified otherwise. The texts are meant to summarize concepts in daily language and should not be considered as comprehensive or definite. We welcome suggestions for modifications or additions at\u00a0<a href=\"mailto:glossary@tcm.be\">glossary@tcm.be<\/a>.<\/p>\n","protected":false},"featured_media":0,"template":"","class_list":["post-69221","glossarium","type-glossarium","status-publish","hentry"],"_links":{"self":[{"href":"https:\/\/tcm.be\/en\/wp-json\/wp\/v2\/glossarium\/69221","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/tcm.be\/en\/wp-json\/wp\/v2\/glossarium"}],"about":[{"href":"https:\/\/tcm.be\/en\/wp-json\/wp\/v2\/types\/glossarium"}],"wp:attachment":[{"href":"https:\/\/tcm.be\/en\/wp-json\/wp\/v2\/media?parent=69221"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}