In Belgium
Over-indebtedness affects a growing number of Belgian households. For landlords, it manifests through recurring rent arrears and the tenant’s inability to regularise their situation despite reminders.
In Belgium, an over-indebted tenant can apply for a collective debt settlement (CDS) procedure before the labour court. This procedure, governed by articles 1675/2 et seq. of the Judicial Code, aims to allow the debtor to repay debts in a planned manner while maintaining a dignified existence.
Over-indebtedness is a structural problem, not just an individual one. Contributing factors include: job loss, illness, divorce, rising cost of living.
How it works
CDS application. The tenant files a request with the labour court. A debt mediator is appointed (lawyer or approved mediation service).
Immediate effects. Once admissibility is pronounced by the judge, all seizures and proceedings are suspended. The landlord can no longer obtain a payment order or eviction for pre-existing arrears.
Repayment plan. The mediator draws up a repayment plan over 5 to 7 years, taking into account the debtor’s income and essential expenses. Creditors (including the landlord) are repaid proportionally to their claims.
Current rent. The tenant must continue paying current rent during the procedure. Only arrears prior to the admissibility ruling are included in the plan. If the tenant stops paying current rent, the landlord can request lease termination.
Practical example
Ahmed, a tenant in Charleroi, loses his job and accumulates 3 months’ rent arrears (1,950 EUR). His landlord sends a formal notice. Ahmed, also indebted to his bank and a credit company, applies for CDS at the labour court.
The judge admits the request. The landlord receives notification and registers their claim of 1,950 EUR. The mediator draws up a 5-year plan: Ahmed will repay 15 EUR/month to the landlord (i.e. 900 EUR over 5 years — a partial loss for the landlord). Meanwhile, Ahmed continues paying his current rent of 650 EUR.
Key considerations
Impact on the landlord. CDS does not guarantee full repayment of arrears. The landlord often receives a fraction of their claim. It is a frustrating but legally binding situation.