Document background
The Demand Letter For Money Owed is a critical document in Belgian debt collection practices, serving as a formal prerequisite before initiating legal proceedings. It is used when informal attempts to collect payment have failed and the creditor needs to escalate the matter. The document must comply with Belgian Civil Code requirements and the Law of 2 August 2002 on Late Payments in Commercial Transactions, as well as relevant EU directives. It typically includes detailed information about the debt, calculation of interest according to Belgian statutory rates, and a formal payment deadline. This type of demand letter is particularly important in Belgian jurisdiction as it establishes a formal record of the collection attempt and can significantly strengthen the creditor's position in subsequent legal proceedings. The document can be used in both business-to-business and business-to-consumer contexts, though the specific requirements and tone may vary depending on the relationship between the parties.
