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The Insolvency Code in the Netherlands

The Insolvency Code in the Netherlands

Updated on Friday 04th September 2015

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According to the Dutch insolvency code, there are three types of insolvencies in the Netherlands: bankruptcy, suspension of payments and debt restructuring. While the suspension of payments targets the reorganization of the debtor and its assets, bankruptcy is aimed at the liquidation of the bankrupt estate. In case of debt restructuring, the debtor must make all the possible efforts to be able to pay its creditors over a period of three years. This is possible only for natural persons.
 
Bankruptcy in the Netherlands
 
Bankruptcy in the Netherlands can be involuntary, if petitioned by the debtor’s creditors, or voluntary, if petitioned by the debtor himself. If the public interest requires bankruptcy, the public prosecutor may petition for it. However, this is considered an exceptional case.
 
Bankruptcy petitions can be made before the district court of the place of residence or at the last known place of residence, if the debtor has moved from the Netherlands. If the debtor has a company in the Netherlands but does not live in the country, the petition can be made at the company’s office. 
 
When the petition for bankruptcy is granted, a trustee will be appointed by the district court. After the commencement of a bankruptcy proceeding, the debtor loses the power to manage its assets.
 
There are five ways in which bankruptcy can conclude: cancellation, liquidation, closing, simplified completion and composition.
 
Our Dutch accountants can help you file a bankruptcy petition and assist you throughout the entire process.
 
Suspension of payments and debt rescheduling in the Netherlands
 
The suspension of payments is a proceeding that gives the debtor time to reorganize and partially continue the viable business even though he is in financial distress. The debtor is given temporary relief against its debtors. Suspension of payments can be granted only if it is requested by a debtor and only to natural persons that do not have independent professions or businesses.
 
The debt rescheduling scheme is only available for natural persons in the Netherlands. A natural person may apply for a rescheduling scheme if his will be unable to pay his debts or if he has ceased to pay his debts.
 
Our accountants in the Netherlands can help you apply for a debt rescheduling or apply for a suspension of payments.
 
Contact our accounting firm in the Netherlands for more information or to receive a personalized offer.
 
 
 

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