Debt mitigation- remedies to debt problems

The supervisor is a lawyer under the auspices of the Debtors' Ombudsman. The depositary conducts negotiations with the creditor and proposes a contract in consultation with you.

The role of the supervisor is to propose a contract for the debt mitigation in cooperation with the applicant and to carry out negotiations with the creditors.

A supervisor is appointed as soon as the application for payment adjustment is approved.

The same lawyer who processes an is usually appointed as the supervisor.

It is important that the applicant keeps active contact with the supervisor.

If the applicant does not cooperate, this may lead to the cancellation of the debt mitigation process.

During the period where the appointed supervisor attempts to make a debt mitigation agreement, a temporary break from collection procedures is granted (moratorium on payments).

A moratorium on payments will allow for financial restructuring and debt mitigation.

Moratorium on payments will last from the moment the application is approved until an agreement is reached.

For more information on responsibilities and duties during moratorium on payments

The appointed supervisor publishes an advertisement in the Law Gazette. This is done to check whether there are other claims that belong to you.

People or companies that believe they have a claim against you can then declare it. They have 3 weeks to do so.

By stating a claim, the claimants concerned are given the right to intervene in the award of the contract.

In consultation with you, the depositary will prepare a proposal for a contract.

The contract takes into account your circumstances, your ability to pay and the extent of your debt.

For example, agreements are being made on:

• one fixed monthly payment

• suspension of payments for a fixed period

• total surrender or cancellation of debt

More on debt mitigation agreements

A proposal is sent to all claimants who then have 2 weeks to respond.