Debt relief assistance in the Netherlands

Martijn SchutAdvisor at Stimulansz

Contents

• How we do it

• New Municipal Debt Relief Assistance Act

• Cuts on government budgets

Current situation

1. Voluntary debt settlements by municipalities

2. Binding settlements in court (Wsnp: Debt Rescheduling Act)

Outcome ≈ 3 years on 90-95% of minimum income. Rest of debts is remitted

Problems

Differences between 418 municipalities despite code of conduct

Inefficiency, waitinglists, different approach of creditors, clients, court and other stakeholders…

Problems

‘Some municipalities neglect their duty to have regard for the welfare of their citizens’

(Municipal debt relief assistance is/was not obligatory)

Problems

‘Soft approach to clients’

Problems

Pressure on (expensive) court

Municipal debt relief assistance act(Wet gemeentelijke schuldhulpverlening)

Municipalities responsible for finding solution for the relay of debts if reasonably can be foreseen that a person cannot continue paying his debts or if he has already stopped paying. Including aftercare.

(not: prevention)

Municipal debt relief assistance act(Wet gemeentelijke schuldhulpverlening)

• 4-year-plan (policy, actions, proposed results, securing quality, max. waiting time, family with children,

• Max. waiting time first consult 4 weeks (3 days if urgent)• Assistance can be refused in case of fraud • ..or if person had assistance before• Explain cliënt what results are to be expected en when• Homeless must be offered social assistance first• Immigrants or foreigners only allowed with residence permit• Moratorium (creditors cannot claim for 6 months)• Bankaccount

Municipal debt relief assistance act(Wet gemeentelijke schuldhulpverlening)

• Notice that: the Act does NOT tell municipalities HOW to conduct debt relief assistance

Wet gemeentelijke schuldhulpverleningMunicipal debt relief assistance act(Wet gemeentelijke schuldhulpverlening)

Municipal debt relief assistance act(Wet gemeentelijke schuldhulpverlening)

Civil law > administrative law

1. Important to define products and conditions

2. Monetary penalty for municipality if it decides too late

What else is up?

• More clients

• More complex problems

• Cut down municipal budgets

Winston Churchill

Gentlemen, we have run out of money…

Now we have to

think

• Only help low incomes

• Do not help self-employed

• No 2nd chance

• More selfhelp

Do more with lessSmaller targetgroup

• Larger scale

• Volunteers

• Group intakes en courses

• IT

• Internet

Do more with lessMore efficiency

• Tailormade assistance / differentiation• Less supervision on expenses• Clear delimitation of debt relief assistance• What’s in the name:

Schuldhulpverlening > Schulddienstverlening

Do more with lessLess service

E-mail: Martijn.schut@stimulansz.nlBlog: http://martijnschut.wordpress.comWeb: www.stimulansz.nlLinkedIn: www.linkedin.com/in/martijnschut1