Loan recovery Litigation Netherlands

Recovery of a loan sounds so simple, but in practice it sometimes leads to problems. Problems often arise when lender and borrower have not (or perhaps not well enough) put the agreements of the private loan on paper. Family and friends sometimes lend each other money. It is then not always usual (but advisable) to put this down on paper in detail. Often it goes well, but sometimes it goes wrong. Loan recovery litigation Netherlands Recovery.

Loan agreement

Problems often arise when there are no agreements on paper. However, an oral agreement is the same as a written agreement, on the understanding that an oral agreement is often difficult to prove. Parties can often differ on what exactly was said and what was meant. Therefore, it is always preferable to put agreements on paper. If this is not possible, it is always advisable to record agreements in e-mails or app-messages, for example.

Repayability of the loan

Of course it is important to check whether the loan is due and payable. Perhaps you have lent money and you need it urgently, but this requires that the loan is payable. The borrower may be willing to repay earlier, but whether he/she is obliged to do so depends on the agreements made. For example, has a term been agreed for the loan, or is the borrower in default / in breach of any obligation, such as paying the interest? It is also possible that no term has been agreed. If this is the case, a reasonable period of time can be applied for repayment.

Loan default notice

Sometimes a specific term has been agreed for repayment of the loan. In that case a notice of default is not required, because if payments are not made on time the borrower is legally in default. This is because the loan has not been paid on (or before) the strict deadline. If no term has been agreed, the borrower can be put in default. He or she must then be given a reasonable time to repay the loan.