The Amsterdam Court of Appeal has ruled that judicial bailiffs cannot threaten debtors with bankruptcy proceedings when such legal actions are unfeasible.
The case involved an unpaid debt of €206 owed to a gym.
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After multiple demand letters, phone calls, and home visits failed to secure payment, the hired bailiff sent a formal letter threatening a bankruptcy application.
The bailiff's warning presented the bankruptcy process as absolute certainty.
It stated that a receiver would be appointed, assets and income seized, mail redirected, and the bankruptcy publicly disclosed, alongside losing control over marital property unless paid within five days.
The debtor challenged the letter as extraordinarily intimidating, noting it omitted the debt amount, failed to reference a supporting claim, and was issued without a prior court judgment.
While the Amsterdam Board of Judicial Bailiffs initially dismissed the complaint, the Court of Appeal reversed the decision.
Court's Ruling
According to the appellate court, the Debt Collection Quality Act requires collectors to act correctly and forbids threatening measures that cannot yet be legally deployed.
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The court deemed the bankruptcy notice disproportionate and contrary to professional regulations.
A bankruptcy order requires summary proof of the applicant's claim, a supporting claim from another creditor, and evidence that the debtor has ceased payments.
The bailiff provided no evidence of knowing about any supporting claims.
The court determined the bailiff exercised improper pressure by announcing a measure that was never intended to be carried out.
Furthermore, the tone was misleading because it presented bankruptcy as guaranteed without explaining that judicial review is required.
The Court of Appeal issued a formal warning to the judicial bailiff.
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The court also ordered the bailiff to reimburse the debtor €100 for court fees, €50 in personal costs, €1,050 for legal assistance, and €2,000 for court processing costs.
