You have contracted one or more credits and for various reasons, you are having difficulty in meeting the reimbursement of your monthly premium.

You are in some way in a situation of over-indebtedness and you would like to turn to an active mediation organization in matters of credit and over-indebtedness.

Let’s take stock together on this issue.


Prevention is better than cure

credit loans

It is first and foremost the essential role of your credit broker to build with you a reasonable credit report. It is a prudential policy which consists in making your broker the first of your advisers. Everyone has limits and when it comes to credit, this truth is also true.

In this regard, it is up to you to be honest with your broker and not to conceal from him information that would give another image of your financial situation. Willfully deceiving your broker is also liable to criminal prosecution because this behavior generally highlights false documents, uses of false reports and false statements which can be prosecuted in court.


Monthly default: end of access to credit

credit access to credit

If you are no longer able to repay your financial installments for two monthly payments, the first sanction will be administrative. Your lender has the legal obligation to report your credit to the Cream Bank. This means that your file is in dispute and that you must reimburse your entire loan immediately to the credit insurer. In addition, you will be registered with the Cream Bank, which will close your doors to credit for a period of 15 months.


Special situation for companies, the self-employed and the liberal professions

self-employed loan

There is a mediation body for companies, the self-employed and holders of liberal professions. The SME Finance Knowledge Center (CEFIP) can help a company, a self-employed person or a holder of liberal professions to have access to credit to alleviate a situation of temporary cash shortage. In this case, the problem is different. It is not a question of dealing with a default in the reimbursement of monthly premiums but rather of finding common ground between a bank and an entrepreneur so that the latter can have access to credit.

Currently, given the credit crisis, banks are sometimes more cautious in granting credit. In this case, CEFIP can help you try to solve a temporary situation.


Collective debt settlement

debt settlement

CEFIP does not intervene for individuals. Consequently, that you did not contract a loan within the framework of the exercise of your profession but within the framework of your private life, the situation is different.

The Legislator has provided for a law in Belgium to protect individuals who find themselves in a situation of over-indebtedness such that they could no longer face the reimbursement of their monthly premiums and could no longer lead a life in accordance with human dignity. This is the law of July 5, 1998 relating to the collective settlement of debts.

If your request is accepted by the labor court, you will be appointed a debt mediator who will establish a collective debt settlement plan.

The purpose of the collective debt settlement plan is to restore the financial situation of an over-indebted person. He must allow him, as far as possible, to pay his debts, by guaranteeing him and his family a life worthy of human dignity.

The collective debt settlement plan can be amicable or judicial.

  • Amicable plan: it is negotiated by the debt mediator with all of your creditors; if all the parties agree, it is approved by the judge.
  • Judicial plan: in the absence of creditors’ agreement on such a plan, the judge may impose a judicial settlement plan with a maximum duration of five years.

A judicial plan may include the following measures

  • Rescheduling of debt payments
  • Reducing interest rates
  • Suspension of the effect of foreclosures, as well as assignments of receivables
  • The remission of indemnities and costs
  • Any other accompanying measure, such as budgetary guidance, the obligation to undergo a drug treatment, etc.

If you are experiencing serious financial difficulties and can no longer cope with your debts, it is advisable to contact an approved center to practice debt mediation (CPAS or non-profit association).