Recognition of debt between individuals

An acknowledgement of debt is a writing in which a person (called debtor) undertakes to repay the amount of money that another person (called creditor) lent it, with or without interest rate.

Whatever the amount of the debt, it is recommended to make an acknowledgement of debt.

However, from €1,500, it is obligatory to make an acknowledgement of debt: in this case, and in case of dispute, the provision of a written statement is necessary to prove the acknowledgement of debt.

There is no amount that cannot be exceeded to recognize a debt.

The creditor must keep in his possession the original of the acknowledgement of the debt, until the debtor repays the debt in full. In case of conflict on the repayment of the amount lent, the debt recognition constitutes a security for the creditor :

• This document proves that the amount paid is a loan, not a gift, to the debtor
• It is up to the debtor to prove that the sum was not paid to him.

It is possible to make a debt recognition:

• Either in the form of a privately signed document, drafted by the debtor and the creditor
• Either in the form of a authentic instrument, drafted by a notary. The notarial authentic instrument has enforceability, i.e. it allows the creditor, in the event of non-repayment, to sue the debtor without first having to appeal to the court.

To be valid, the recognition of debt drafted by the debtor and the creditor in the form of a privately signed document must contain the following information:

• Date of recognition of debt
• Name, forename, address, date and place of birth of debtor and creditor
• Amount of the sum lent, indicated in figures and letters (in case of difference between the 2 amounts, only the sum written in full is taken into account)
• Date on which the payment of the debt will be due
• Interest rate, if it's scheduled. Beware, the interest rate must not exceed wear rate.
• Signature of the debtor.

The following debt recognition model can be used:

Model for recognizing debts or loans between individuals

After the debtor has paid all of his debt to the creditor, the creditor must remit to the debtor:

• Or the original of the recognition of debt
• Either a receipt, that is to say a written document certifying that the creditor has received from the debtor a sum of money in repayment of the totality of his debt.

An acknowledgement of debt is prescribed 5 years after the due date.

Bank account seizure If the creditor does not instruct a Commissioner of Justice to take an enforcement action (for example: loses the ability to claim the amount owed to him.

The creditor and the debtor may decide, in the written form for the recognition of debt, whether the period of limitation is shorter or longer. However, this period may not be less than 1 year or more than 10 years.

The steps to be taken depend on the form in which the recognition of the debt was made: instrument under private signature, drawn up by the debtor and the creditor or authentic instrument, written by a notary.