Bankruptcy

If you own a company in the Netherlands and you are no longer able to pay your debts, you can ask the court to declare you bankrupt. You do not need a lawyer to submit this request. If you have at least two creditors, the bankruptcy declaration can also be requested by one or more creditors.

You will also be declared personally bankrupt depending on the legal form of your business.

The rules applicable to bankruptcy are laid down in the Bankruptcy Act (Faillissementswet).

Management by a trustee

In the event that you are declared bankrupt the court will appoint a trustee. He or she is the only one authorised to manage your company as of the date of your bankruptcy. The trustee is responsible for submitting VAT returns and for paying the VAT owed. He or she can decide to liquidate your company immediately or to allow the company to continue its activities for a period of time.

In a bankruptcy situation, therefore, you lose your authority to act on behalf of your company without the trustee's permission. Nevertheless, you continue to be the business owner until the trustee has performed the last company activity.

Starting again

If you intend to start a new business, you must take account of the fact that your old creditors, including the Tax and Customs Administration, may approach you again for payment of the debts that you have still not paid.

Bankruptcy register

In the Central Insolvency Register (Centraal Insolventieregister) on Rechtspraak.nl you will find details of all bankruptcies, suspensions of payments and debt restructuring of natural persons dating from after 1 January 2005.

Non-bankruptcy certificate

Tendering conditions sometimes require the submission of a non-bankruptcy certificate (Verklaring non-faillissement). You can apply for this certificate from the insolvency division of the district court in the jurisdiction where your registered place of business is located.