Bailiff restricts the ‘debt industry’: ‘This will change the lives of hundreds of thousands of people’

What is going to happen in the House?

Patrick Van Buggenhout: “A law is being voted that will ensure that far fewer people are taken to court if they cannot pay an invoice. Today, these people often end up in expensive legal proceedings. While they want to pay, they simply cannot do so.”

“From now on, they will in principle always be able to end up in mediation. In such a process, a person’s financial capacity is first examined and a repayment plan is drawn up on that basis. One that ensures that the creditor gets his money and that the debtor can continue to live with dignity. Bailiffs are obliged by the new law to actively engage in mediation. It is also important that justices of the peace will from now on have jurisdiction over unpaid school invoices and medical invoices. They now have nothing to say about that, even though it concerns an important part of the debt mountain.”

What about people who stubbornly refuse to pay anything?

“These can still be dealt with judicially. Figures show that about 40% of debtors refuse to pay, when they actually could. Nothing changes for them. Another 10% are absolutely unable to pay and are often placed under collective debt settlement. But the other 50% are people who do want to pay. They are now being pushed into the abyss because they end up in a system where costs are rising rapidly. They are bombarded with procedures, have no money left to live on and end up in a spiral of debt. That is now coming to an end.”

On the basis of one new law?

“No, two more laws have been voted in recent months that provide better protection for debtors. And a fourth law is pending. Perhaps it will be voted on in the next legislature. All together, this seriously limits the debt industry. It is nothing less than a revolution and also unique in Europe. People often curse at politics, but politicians have done meaningful work here. The cabinet of former Minister of Justice Vincent Van Quickenborne (Open Vld) and his successor Paul Van Tigchelt (Open Vld) worked hard to make this possible. Just like in the cabinet of Minister of Economy Pierre-Yves Dermagne (PS). Moreover, all laws have been approved in parliament without votes against. That says a lot.”

What role did you actually play in that?

“Such a revolution is never the work of one person, but it is no secret that I was one of the first to climb the barricades. I noticed a few years ago that the system was completely screwed up and have done everything I can to change it ever since. In recent years I have spent many weekends writing texts that could help politicians to reform. I have strongly advocated for a change behind the scenes, but I have also been very critical in public. Eyes opened in Wetstraat when concrete examples came to the media. People who testified that, for example, they earn 3,000 euros per month, but have to pay off 3,500 euros in debt every month. Everyone sees that something like that is unfair.”

“We have also been able to show that there is an alternative. I have been trying with MyTrustO for a few years now (a project in collaboration with civil society organization Beweging.net, ed.) collect debt in an ethical manner. That is successful. We show that it is possible to help people pay off their debt without pushing them under. That has inspired politicians.”

How did “the debt industry” respond to your struggle?

“I have received a lot of pushback, but in the meantime I notice that a consensus has grown. Almost everyone in the sector is convinced that things have to change. Bailiff is a useful and honorable profession, but the perception is wrong. That is partly our own fault. These laws will ensure that our image improves from now on. We will never be popular, but if we focus more on mediation, we can be part of the solution to save people from poverty. I am convinced that the new system will mean a profit for almost everyone.”

How?

“Because of the chain reaction that starts. People with debts will have less serious problems, which will put less pressure on our government’s social budget. Public Social Welfare Centers will be able to process ‘light’ files more quickly, giving them more space to deal with the heavy files. The justice system benefits from fewer legal proceedings and can use the resources released for other matters. Creditors can collect more money because their debtors are not made economically dead or bankrupt. The government can collect more taxes because companies are more successful in getting their outstanding invoices paid. Social spending will fall because people are less likely to fall into poverty. And employers will see a drop in absenteeism among people with debts, because they are no longer under stress.”

“Add it all up and you get an enormous amount that our society saves. In the Netherlands they have calculated that they will spend 17 billion euros to collect 3 billion euros in debts. By evolving to a new system, we will significantly reduce that cost in Belgium. These are billions that we win and that we can invest to combat poverty.”