7. EXTRAJUDICIAL DEBT COLLECTION 

7.1 In principle, we often continue with the extrajudicial step of the debt collection process. We're hoping to remove the need to go to Court during this phase, as that can be expensive. We'll call your debtor in the Netherlands to seek payment. We do have the following options at this stage:

• Written demand letters and phone calls: You send a written complaint letter to the claimant and contact them by telephone, asking that they settle the fee with interest and expenses within a few days;
• Draft a payment arrangement: in some situations, you will agree to a short payment arrangement. The downside of this is that if the defendant fails to comply with this agreement, there can be no dispute as to whether or not the argument is legitimate. After all, if the debtor commits to a payment arrangement, then the debtor accepts the claim; declares legal proceedings: when there is no payment, the declaration of legal proceedings will often convince the Dutch client to pay. Your Dutch client does not wish to run the risk of commencing legal proceedings against them.
• Bankruptcy lawsuit: The Netherlands ' most successful debt recovery mechanism seeks to lodge a motion for bankruptcy. This is a simple, cheap means of optimizing the debtor's burden.

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8. JUDICIAL DEPARTMENT COLLECTION

8.1 If your defendant refuses to pay during the extrajudicial process, we can go to Court after mediation with you.

We will always provide you with information about the possible costs in advance and we will only continue with your approval.

There are a number of legal cases in the Netherlands which you could start collecting your claim.

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The most important protocols are laid out below:

• Insolvency proceedings ("Faillissementsaanvraag"): the insolvency proceedings can be started in an undisputed argument. The bankruptcy proceedings are very quick; there will be a hearing at the Court within three weeks. The Court determines during that hearing whether the claimant is to be declared bankrupt. Nevertheless, the purpose of the bankruptcy motion is, in theory, to exert pressure on the debtor in order to get your claim paid. Most debtors are going to pay out very quickly. If the debtor really can not pay then they may be declared bankrupt. In that case, a receiver is named, who will then equally divide the debtor's properties among all creditors;
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• Ordinary civil litigation: Civil proceedings may be opened for both contested and undisputed claims. That means a case is brought against the debtor. The Court can order settlement of your petition to the debtor. Proof may be addressed in various ways in those trials. Often the Court must try to persuade the parties to agree to a settlement. The downside of these trials is that they take a fairly long period of time. In the Netherlands, on average, simple civil proceedings take six months to a year. If this is a complex matter, it can take even longer (about one or two years). There could also be an appeal, adding to the time until the lawsuit is finally resolved.

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EUROPEAN ORDER FOR PAYMENT PROCEEDINGS

In the case of an uncontested dispute between two parties located in EU Member States (except Denmark)

European order for payment proceedings may be initiated.

In your situation, the prosecutor who manages the case will decide whether this kind of action is acceptable.

The creditor usually fills out a standard form for EU Order for Payment procedures and submits this to the Tribunal.

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Instead, the Court issues a Local Transaction Notice. The debtor then has 30 days to decide whether they object to the charge. 

If no notice is obtained within the 30-day span, you can require the Court to finalize the payment order (called a "declaration of enforceability"). This decision is true and enforceable and is recognized in any Member State (except Denmark). 

The EU Payment Order is never appropriate for contested issues (so not in situations where there is a disagreement over the invoice).

The benefit of this process is flexibility and low cost (some Member States don't even impose a court fee), but the drawback is that if it gets challenged, the case stops, and if the claimant wants to continue, a regular civil action will have to be launched.