In Dutch bankruptcy law, a company’s inability to pay its debts is a primary trigger for bankruptcy. This occurs when a business facing financial distress ceases to fulfill its financial obligations, signaling a critical juncture in its legal and financial affairs. What matters under Dutch law is that a situation has arisen where the debtor has reached a state where he has stopped paying and there is a plurality of creditors. Below, our Dutch lawyer explains more about filing for bankruptcy in the Netherlands.
File for Bankruptcy under Dutch law
Filing for bankruptcy in the Netherlands is quite common and you would do well to be well aware of what this entails; whether you are the applicant or the (alleged) debtor of a claim. After the actual filing for bankruptcy in the Netherlands, a hearing takes place. Dutch bankruptcy hearings are held in the Netherlands every week and can even occur without the underlying creditor having previously obtained a Dutch judgment. Besides being a means for a Dutch trustee to efficiently and effectively liquidate an asset, it is also a means of pressure for a Dutch debt collector to get paid before the date of the bankruptcy hearing. Our Dutch debt collection law firm will explain the most important aspects.
A voluntary bankruptcy filing requires a company to adhere to specific procedures. This involves completing a form from the local court registry and submitting necessary documents such as the company’s articles of association, shareholders’ register, and trade register extract. A resolution from the shareholders indicating the intent to file for bankruptcy is also needed. Adherence to these steps can result in a rapid declaration of bankruptcy, sometimes within the same day.
Dutch Bankruptcy Filings and debt collection
In cases where a creditor initiates the bankruptcy process, the law mandates the involvement of a professional attorney. The creditor must demonstrate the existence of at least two creditors, including themselves, with at least one having a claim that is due and payable. This underscores the crucial role of legal guidance in bankruptcy proceedings.
Whether you are on the claimant side or need to defend against a bankruptcy petition, our Dutch lawyers can support you in this in the Dutch courts. Filing for bankruptcy is often used in Dutch debt collection proceedings, and our Dutch lawyers can guide you in determining the right strategy and making the right choices in these forms of Dutch debt collection.
Dutch Bankruptcy FAQs
Q1: What are the preliminary requirements for a company to initiate bankruptcy proceedings in the Netherlands?
A1: Companies must fill out a specific form from the court registry and submit key documents like the articles of association, ensuring compliance with the formalities for a swift bankruptcy declaration.
Q2: Is it possible for creditors to start Dutch bankruptcy proceedings against a company?
A2: Yes, creditors can file for bankruptcy against a company by proving the existence of multiple creditors and a due, payable claim, necessitating legal representation.
Q3: How does MAAK Advocaten assist in bankruptcy cases?
A3: MAAK Advocaten provides experienced Dutch insolvency lawyers for strategic advice and representation in the Netherlands, focusing on the unique challenges of each bankruptcy case.
MAAK Advocaten: Specialized in Bankruptcy Law
MAAK Advocaten distinguishes itself with a team of seasoned insolvency lawyers. These experts, well-versed in the subtleties of bankruptcy proceedings and often serving as trustees, offer strategic advice and legal representation, ensuring a tailored approach to each insolvency situation. Explore the opportunities for filing for bankruptcy in the Netherlands.
