Prevention Is Better Than Cure

Responsible borrowing remains the most effective protection against overindebtedness. Your credit broker’s essential role is to help you build a reasonable and balanced credit file. By analysing your income, fixed costs and existing loans, your broker applies a prudent policy designed to protect you and make sure your monthly instalments remain payable in the long term. By contrast, an honest and open discussion with your broker enables you to identify possible risks early on, adjust loan amounts or durations, and avoid ending up in default on payment, which has serious consequences for your access to credit in Belgium.

Default on Monthly Repayment: Impact on Your Access to Credit

If you are unable to repay your monthly instalments for two consecutive months, your situation is no longer a simple delay: it becomes a payment default. In such a case, your lending institution is legally obliged to declare your credit to the National Bank of Belgium (NBB). Your file then enters into litigation, and you may be required to repay the entirety of the outstanding capital to the credit insurer. This registration with the NBB has a direct and restrictive impact: it generally closes access to new credit for a period of 15 months. During this time, it will be very difficult, if not impossible, to obtain new financing, even if it is to rebalance your situation. Hence the importance of contacting your broker or lender as soon as the first difficulties arise, before payment incidents are recorded. If you already find yourself in default, do not ignore reminder letters or contacts from your creditors. A negotiated solution (rescheduling, temporary reduction of instalments, etc.) is often preferable to a worsening situation that could lead to seizures or the need to resort to collective debt settlement.

Specific Situation for Businesses, Self-employed and Liberal Professions

When financial difficulties concern professional activity (company, self-employed person, liberal profession), the approach is different from that of a private individual. In Belgium, the SME Financing Knowledge Center (CEFIP) can intervene to help a business, a self-employed person or a holder of a liberal profession obtain or maintain credit in the event of a temporary cash flow shortage. In this context, the issue is not directly a default on monthly repayments, but rather the search for common ground between the bank and the entrepreneur. CEFIP can facilitate dialogue, analyse the feasibility of a professional project and support the implementation of financing adapted to a specific cash flow need. In a still cautious credit environment in 2026, banks may be more reluctant to grant credit, especially to small structures or vulnerable sectors. CEFIP can then help unlock a temporary situation, improve the credibility of your file with financial institutions and, where possible, avoid more drastic measures that could jeopardise your business.

Why Act Early in Case of Overindebtedness?

Collective Debt Settlement for Individuals

When overindebtedness affects a private individual (outside any professional activity), CEFIP is not the competent body. In Belgium, the Legislator has introduced a protective mechanism for individuals whose level of debt prevents them from repaying their monthly instalments and from living in accordance with human dignity: the law of 5 July 1998 on collective debt settlement. If your application is accepted by the labour court, a debt mediator is appointed to draw up a collective debt settlement plan. The objective is to restore, as far as possible, your financial situation by organising the repayment of your debts while preserving a minimum standard of living for you and your family. The plan can take two main forms:

• Amicable plan: negotiated by the debt mediator with all your creditors. If all parties agree, the judge approves the plan, which then becomes binding.
• Judicial plan: if no agreement is reached with the creditors, the judge can impose a judicial settlement plan for a maximum period of five years.

A judicial plan may include various measures, such as:

• Rescheduling of debt payments
• Reduction of interest rates
• Suspension of the effect of seizures and assignments of claims
• Waiver of indemnities and fees
• Any other accompanying measure deemed useful by the judge (budget guidance, obligation to undergo detoxification treatment, etc.).

If you are experiencing severe financial difficulties and can no longer meet your debts, it is strongly recommended that you contact an accredited centre for debt mediation (CPAS or recognised non-profit association). These professionals can inform you of your rights, check whether you are eligible for collective debt settlement and help you compile your file.