Guaranteeing a debt: pledge and pledge
Verified 01 January 2024 - Legal and Administrative Information Directorate (Prime Minister)
2024 Rates
Published on 1 January 2024
The registration, modification and cancelation rates for pledges and pledges indicated in the sheet are those for 2023.
They are subject to change in 2024 and will be updated as they become available.
Pledging and pledging are techniques of guaranteeing a debt. That is, if the debtor does not pay the debt on time, creditor will use the guarantee given to it to obtain payment. To do so, he can either retain ownership of the property that is given as collateral, or sell it. The guarantee is therefore a means of assuring the creditor that he will be paid. The type of property that has been pledged will determine whether the security is a pledge or a pledge.
Pledge
The professional who has a debt (called the debtor) gives the creditor a guarantee that it will be paid. This guarantee applies to goods needed for their activity (professional equipment, business, craft funds or stock, for example).
Yes, to the due date of the debt, the debtor has not paid the creditor, the latter can bring the court for the following 2 reasons:
- Request the forced sale of the property given as collateral (judicial sale)
- Assigning ownership (judicial assignment)
FYI
the maturity of the debt corresponds to the time when the debtor will have to pay the creditor.
The creditor who has a guarantee is “privileged”: the guarantee gives him priority over other creditors to obtain payment of the debt in case of collective proceedings.
The pledge may be granted to any creditor or third party.
However, when the pledge relating to stocks, the creditor may only be a credit institution or a financing business. In addition, the creditor must have granted a credit to a company or individual in the course of his professional activity.
For the pledge, only onemovable property bodily or a set of tangible personal property may be given as security.
The security may relate to an existing asset (current receivable) or to an asset that does not yet exist but must be determinable (future receivable).
The future good may concern one thing fungible (e.g. quantity of wheat or fuel).
It may be sold by the debtor if he replaces it with something of the same nature in an equivalent quantity before the maturity of the debt.
The debtor may pledge only property belonging to him.
For example, it may be computer hardware or professional equipment. It can be of any kind.
The pledge can be of 2 types:
- The pledge with dispossession corresponds to the pledge for which the asset given as security is given and kept by the creditor.
- The pledge without dispossession corresponds to the pledge for which the debtor retain the good and its use. In the latter case, the creditor will still be able to use the pledge to obtain payment of the debt.
FYI
Real estate (e.g. business premises) cannot be pledged, but can be mortgaged.
The written agreement is not mandatory.
If the debtor and the creditor decide to do so, it shall contain the following information:
- Designation of secured debt
- Quantity of goods pledged
- Type or nature of property pledged
The pledge must be enforceable to third parties.
Third party effectiveness is determined differently depending on the type of pledge.
Répondez aux questions successives et les réponses s’afficheront automatiquement
Pledge with Dispossession
The dispossession of the pledged asset is sufficient for the opposability to be made.
Pledge without Disposal
The creditor must enter the pledge in the special register of the registry of the commercial court on which the debtor depends.
This may be the commercial court in which the debtor is registered or, if he is not subject to the registration requirement, the place where his registered office or domicile is situated.
This registration will enable the pledge to be publicized and make it enforceable against third parties.
The creditor must send one of the originals of the instrument constituting the safety (or a dispatch if the document is drawn up in authentic form). And he has to fill in 2 copies of a registration form.
The transmission unit shall contain the following elements:
- Identity of debtor and creditor:
- In the case of a company, its legal form, name and registered office must be indicated. Its unique identification number must also be completed, if possible, with the mention SCR: titleContent with the name of the city of registration
- In the case of a natural person, the person's full name, date and place of birth, domicile shall be indicated. Its unique identification number must also be completed, if possible, with the mention SCR: titleContent with the name of the city of registration
- Date of pledge
- The amount of the secured claim, its maturity date, its interest rate and whether there is a commission pact (if so). If it is a future claim, the factors that determine it must be stated.
- Description of the property pledged, its nature, location, make, serial number. If the goods are present or future, their nature, quality and quantity must be indicated.
- Category to which the pledged asset belongs on a nomenclature
- If so, the debtor mayalienate the fungible things pledge
- Date and number of pledge entry
The initial registration is valid for 5 years and may be renewed.
In the event of non-renewal, the Registrar shall cancel it automatically.
For any modification or renewal of a registration, the debtor or creditor must apply to the registry of the commercial court where the registration of the pledge was made.
The amendment shall be published alongside the initial registration.
Répondez aux questions successives et les réponses s’afficheront automatiquement
Modification of a pledge without dispossession
The amending registration form shall be drawn up in two copies.
Amending registration form for a non-possessory pledge or pledge
Renewal of a pledge without dispossession (natural person)
Renewal of a pledge without dispossession (legal person)
The Registry shall cancel the pledge in any of the following situations:
- The debtor has paid its debt to creditor.
- The debtor or creditor did not renew the original registration.
The debarment may be initiated by the creditor or debtor in one of the following ways:
- At the agreement of the parties
- By means of an act giving release of registration
Cancelation may also take place pursuant to a decision of a court against which no appeal or appeal is possible.
Cancelation shall be effected by means of an entry made by the Registrar in the margin of the entry. The Registrar shall issue to the applicant, at his own expense, a certificate of cancelation.
Please note
in the event of early repayment of the claim, the debtor is not obliged to pay the outstanding interest. If the creditor refuses the debtor's offer, the debtor may record the amount offered to discharge his debt.
Registering and editing
Répondez aux questions successives et les réponses s’afficheront automatiquement
Pledge without Disposal
Amount of the Claim | Registration | Subrogation, renewal, aging |
|---|---|---|
Less than €7,800 | €12.67 | €8.65 |
Between €7,800 and €20,799 | €23.36 | €14.02 |
Greater than or equal to €20,800 | €63.49 | €34.08 |
Pledge of stocks
Amount of the Claim | Subrogation, renewal, aging | Margin entry |
|---|---|---|
Less than €20,800 | €12.66 | €6.54 |
Between €20,800 and €41,599 | €27.37 | |
Greater than or equal to €41,600 |
FYI
It is no longer possible to apply for the registration of a pledge of stocks.
Radiation
Répondez aux questions successives et les réponses s’afficheront automatiquement
Pledge without Disposal
Amount of the Claim | Total Radiation | Partial Radiation |
|---|---|---|
Less than €7,800 | €12.67 | €8.65 |
Between €7,800 and €20,799 | €23.36 | €14.02 |
Greater than or equal to €20,800 | €63.49 | €34.08 |
Pledge of stocks
Amount of the Claim | Total Radiation | Partial Radiation |
|---|---|---|
Less than €20,800 | €24.70 | €15.34 |
Between €20,800 and €41,599 | €88.90 | €47.45 |
Greater than or equal to €41,600 | €130.37 |
Pledge
The professional who has a debt (called the debtor) gives the creditor a guarantee that it will be paid. This guarantee applies to goods needed for their activity (professional equipment, business, craft funds or stock, for example).
Yes, to the due date of the debt, the debtor has not paid the creditor, the latter can bring the court for the following 2 reasons:
- Request the forced sale of the property given as collateral (judicial sale)
- Assigning ownership (judicial assignment)
FYI
the maturity of the debt corresponds to the time when the debtor will have to pay the creditor.
The creditor who has a guarantee is privileged: the guarantee gives him priority over other creditors to obtain payment of the debt during a collective proceedings.
The pledge may be granted to any creditor or third party.
The pledge relates to the collateralization of a movable property intangible or a set of intangible personal property.
It can be a debt, a social share, a civil business share, a business fund or a craft fund for example.
It can be of 2 types:
- Judicial pledge
- Conventional pledge
The attached elements of a craft or business fund may be included in the pledge of the fund: sign, professional name, right to lease, customers, furniture, tools and professional equipment for example.
The pledge of civil business shares is not possible under the professional civil business (PCS) of a liberal profession.
In the case of a pledge of a claim, this pledge may be made for a specified period. It is also possible that it relates only to a part of the claim unless it is indivisible. The pledge extends to accessories of the claim unless the debtor and the creditor decide otherwise.
In the case of an account pledge, the pledged claim shall be the balance of the creditor, provisional or final at the time of the pledge. This is subject to the regularization of ongoing operations.
The pledge must be made in writing. This contract must designate secured claims and pledged claims.
If they are future, the contract must designate them individually or allow them to do so. It may include the following:
- Debtor
- Place of payment
- Amount
- Maturity
Répondez aux questions successives et les réponses s’afficheront automatiquement
Pledge of tools and equipment
The entry in the registry of the Commercial Court shall be made in a maximum 15 days after the pledge agreement has been signed. The convention itself must be concluded not later than 2 months after delivery of the equipment and tools.
The registration must be made at the registry of one of the following courts depending on the status of the debtor:
- If the debtor is a trader, this is the commercial court of the place where the goodwill is exploited.
- If the debtor is not a trader, it shall be the commercial court of the place where the debtor is domiciled or if he is registered in the SCR: titleContent, of the place where the craft fund is operated.
The creditor must submit the following documents to the Registry:
- Pledge. Where the pledge has been granted to the seller of the tools or equipment, the pledge shall be included in the bill of sale. Where the collateral has been provided to the lender who advances the funds necessary for the seller to pay, the collateral shall be present in the loan document. The document must contain the following information:
- The purpose of the money paid by the lender is to finance the assets acquired
- List and description of assets acquired
- Where the property is located and whether it can be moved
- 2 copies of the entry form for pledging of tools and equipment
The initial registration is valid for 5 years and can be renewed (2 times).
The formalities for renewal are the same as for registration, but the creditor must specify in the 2 slips he files that it is a renewal. It must be the same as the first entry.
Pledge of shares
The registration of shares must be made with the registrar of the commercial court of the place of registration of the business whose shares are pledged.
The creditor must send the following documents to the Registry of the Commercial Court:
- One of the originals of the pledge agreement or a dispatch if the document was drawn up by a notary
- 2 copies of the registration form for pledging shares (this is the same slip as for the non-possessory pledge)
Registration is valid for a period of 5 years and may be renewed.
In order to request the renewal of his pledge, the creditor must send the following document to the Registry of the Commercial Court of the place of registration of the business whose shares are pledged:
Amending registration form for a non-possessory pledge or pledge
Pledge of civil business shares
The pledge of civil business shares is not possible for liberal professionals acting under professional civil businesses.
The pledge must be entered by the creditor with the registry of the commercial court of the place of registration of the business.
The creditor must submit the following documents to the Registry:
- Shipping of the pledge instrument drawn up by a notary or 2 originals of the private act. The 2 originals must be sent with a shipment of the notarial deed that accepts the pledge by the business or the service to the business.
- 2 copies of the notice of pledge
Pledging of civil business shares has no effective end date and need not be renewed.
Judicial pledge
The judicial pledge of goodwill and business shares shall be entered or published by the Registry of the Commercial Court.
The entry of the judicial pledge is provisional, it must be taken in a period of 3 months from the date of the order granting the authorization. If no authorization is given, there is no time limit.
Provisional registration is valid for a 3-year term renewable. If it is not confirmed during these three years, it is no longer valid and the judge of enforcement may request its cancelation.
Final registration may be made from 1 month after provisional registration. It must be lodged at the Registry of the Commercial Court or the provisional registration has been made no later than one of the following periods:
- If the creditor already had an enforceable title at the time of provisional registration, within a period of 3 months after service
- If the creditor had no title at the time of provisional registration, within a period of 2 months after provisional registration
Legal pledge of goodwill
The registration shall be made by the registry of the commercial court of the place where the business is located.
The creditor must file the following at the Registry:
- 2 vouchers containing the following information:
- Identity of creditor and debtor
- Nature of authorization or title under which registration is sought
- Address of hedged goodwill and hedged items
- Amount of secured claim
- Shipping the registration order or one of the following:
- Enforcement Order
- Non-binding court decision
- Proof of non-payment of a bill of exchange accepted
- Promissory note
- Check
- Rent
Final registration has a validity of 10 years. It may be renewed by the creditor.
Judicial pledge of business share
Registration is made by route of service to the business. The document shall then be published in the SCR: titleContent.
The creditor must file the following at the Registry:
- For civil businesses, 2 share pledge notice
- 2 copies of the share pledge
- One dispatch the registration order or one of the following:
- Enforcement Order
- Non-binding court decision
- Proof of non-payment of a bill of exchange accepted
- Promissory note
- Check
- Rent
Final registration has a validity of 10 years, except for civil businesses for which there is no limitation. It may be renewed by the creditor.
Pledge of business and craft funds
The creditor must apply for registration at the Commercial Court Registry within 30 days following the signature of the pledge agreement.
Registration must be taken at 2 places:
- At the Registry of the Commercial Court of the place where the exploited land is situated
- At the Registry of the Commercial Court of the place in which each of the branches of the fund included in the pledge
The creditor must submit the following documents to the Commercial Court Registry:
- Deed of sale of the goodwill or craft fund or the pledge agreement. If the deed is private, an original with the signature of the two parts must be lodged at the Registry
- 2 copies of one of the following:
- Registration form for pledging of goodwill
- Handicraft Fund Pledge Entry Form
Registration is valid for 10 years and may be renewed.
For the renewal of his pledge, the creditor will have to follow the same formalities as for the registration of the pledge. On the other hand, he must file two slips, specifying that the entries he requests are renewing previous ones. It must be the same as the first entry.
The change is subject to a margin publication of the initial registration.
FYI
where the same property is pledged more than once, the ranking of the creditors shall be determined by their order of registration.
Répondez aux questions successives et les réponses s’afficheront automatiquement
Write-off of pledges of business or craft funds
The pledge can be written off in two different ways:
- The radiation may be total. In this case, the registration disappears.
- The radiation may be partial. In that case, the entry shall remain until payment of the debt.
The Registry shall delete the pledge in any of the following situations:
- The debtor paid his debt to the creditor
- The debtor or creditor did not renew the original registration
The creditor may decide to cancel the pledge by sending to the registrar of the commercial court of the place of registration one of the following acts:
- Deed notarized by release
- Shipping of the judgment ordering the removal from the register accompanied by a copy of the service and a certificate of non-opposition or non-appeal of the judgment.
- Original of an administrative act (decision of a State official)
- Act under private seal recorded
Before delisting, the clerk will check that the person signing the document has the capacity and the quality to do so.
The deletion shall be mentioned in the margin of the entry.
Write-off of pledge for tooling and equipment
The creditor is a trader
The pledge can be written off in two different ways:
- The radiation may be total. In this case, the registration disappears.
- The radiation may be partial. In that case, the entry shall remain until payment of the debt.
The Registry shall delete the pledge in any of the following situations:
- The debtor paid his debt to the creditor
- The debtor or creditor did not renew the original registration
The creditor may decide to cancel the pledge by sending to the registrar of the commercial court of the place of registration one of the following acts:
- Deed notarized by release
- Shipping of the judgment ordering the removal from the register accompanied by a copy of the service and a certificate of non-opposition or non-appeal of the judgment.
- Original of an administrative act (decision of a State official)
- Act under private seal recorded
Before delisting, the clerk will check that the person signing the document has the capacity and the quality to do so.
The deletion shall be mentioned in the margin of the entry.
The creditor is not a trader
The pledge can be written off in two different ways:
- The radiation may be total. In this case, the registration disappears.
- The radiation may be partial. In that case, the entry shall remain until payment of the debt.
The Registry shall delete the pledge in any of the following situations:
- The debtor paid his debt to the creditor
- The debtor or creditor did not renew the original registration
The creditor may decide to write off the collateral. He may do so by sending to the Registrar of the Commercial Court of the place of registration one of the following acts:
- Enforceable judgment
- Authentic instrument consent agreement
Before delisting, the clerk will check that the person signing the document has the capacity and the quality to do so.
The deletion shall be mentioned in the margin of the entry.
Cancelation of pledging of civil business shares
The pledge can be written off in two different ways:
- The radiation may be total. In this case, the registration disappears.
- The radiation may be partial. In that case, the entry shall remain until payment of the debt.
The Registry shall delete the pledge in any of the following situations:
- The debtor paid his debt to the creditor
- The debtor or creditor did not renew the original registration
The creditor may decide to cancel the pledge by sending to the registrar of the commercial court of the place of registration one of the following acts:
- Enforceable judgment
- Authentic instrument consent agreement
- Act under private seal consent agreement
Before delisting, the clerk will check that the person signing the document has the capacity and the quality to do so.
The deletion shall be mentioned in the margin of the entry.
Write-off of pledge of shares
The pledge can be written off in two different ways:
- The radiation may be total. In this case, the registration disappears.
- The radiation may be partial. In that case, the entry shall remain until payment of the debt.
The Registry shall delete the pledge in any of the following situations:
- The debtor paid his debt to the creditor
- The debtor or creditor did not renew the original registration
The debarment may be initiated by the creditor or debtor in one of the following ways:
- At the agreement of the parties
- By means of an act giving release of registration
Cancelation may also take place pursuant to a decision of a court against which no appeal or appeal is possible.
Cancelation shall be effected by means of an entry made by the Registrar in the margin of the entry. The Registrar shall issue to the applicant, at his own expense, a certificate of cancelation.
Forfeiture of judicial pledge
Deletion of a provisional entry
The pledge can be written off in two different ways:
- The radiation may be total. In this case, the registration disappears.
- The radiation may be partial. In that case, the entry shall remain until payment of the debt.
The Registry shall delete the pledge in any of the following situations:
- The debtor paid his debt to the creditor
- The debtor or creditor did not renew the original registration
Cancelation shall be requested from the Registry of the Commercial Court on presentation of a dispatch of the decision of release of the pledge.
The creditor must send one of the following documents:
- Order of the judge authorizing the release resulting from the debtor's challenge on one of the following grounds:
- Absence of significance
- Lack of introduction instance
- Lack of confirmation (final disclosure)
- Order of the enforcement judge or the president of the commercial court if the release was taken without authorization
Removal from the register may also be ordered by the trial or enforcement judge if the proceedings brought by the creditor have not been successful or if the creditor's application has been rejected.
Cancelation shall be effected by means of an entry made by the Registrar in the margin of the entry.
Deletion of a definitive entry
The pledge can be written off in two different ways:
- The radiation may be total. In this case, the registration disappears.
- The radiation may be partial. In that case, the entry shall remain until payment of the debt.
The Registry shall delete the pledge in any of the following situations:
- The debtor paid his debt to the creditor
- The debtor or creditor did not renew the original registration
Cancelation shall be requested from the Registry of the Commercial Court on presentation of a dispatch of the decision to release the pledge.
A creditor who wishes to request cancelation must send the clerk one of the following documents:
- Authentic instrument container release
- Act under private seal container released
Cancelation shall be effected by means of an entry made by the Registrar in the margin of the entry
Please note
in the event of early repayment of the debt, the debtor is not obliged to pay the interest outstanding. If the creditor refuses the debtor's offer, the debtor may record the amount offered to discharge his debt.
Registering and editing
Amount of the Claim | Registration | Subrogation, renewal, aging | Margin entry |
|---|---|---|---|
Less than €20,800 | €24.70 | €12.66 | €6.54 |
Between €20,800 and €41,599 | €88.90 | €27.37 | |
Greater than or equal to €41,500 | €130.37 |
FYI
for the pledge of civil business shares, €9.19 at these rates for the filing of documents.
Radiation
Amount of the Claim | Total Radiation | Partial Radiation |
|---|---|---|
Less than €20,800 | €24.70 | €15.34 |
Between €20,800and €41,599 | €88.90 | €47.45 |
Greater than or equal to €41,500 | €130.37 |
FYI
for the pledge of civil business shares, €9.19 at these rates for the filing of documents.
Who can help me?
Find who can answer your questions in your region
Public support service for SMEs
TPE & SME, you have a project, a difficulty, a question of daily life?
You are called back by THE counselor which can help you within 5 days (average time to care).
- Registry of the Commercial Court
Pledge of body furniture
Pledge of intangible furniture
Pledge of stocks