faillissement

Faillissement is the legal status of a debtor who cannot pay their debts as they become due. The process is typically initiated by a petition to the court, either by the debtor themselves or by creditors. If the court finds the debtor insolvent, it may declare faillissement and appoint a curator to manage the debtor’s assets. In the Netherlands and other Dutch-speaking jurisdictions, the debtor’s assets and liabilities become a bankruptcy estate (faillissementsboedel) that is used to satisfy creditors.

During faillissement, the curator takes control of the debtor’s assets, liquidates them where appropriate, and distributes the proceeds to creditors according to a statutory ranking. Costs of the proceedings and the curator’s fees are paid first. Secured creditors, employees’ wage claims, and tax or social security claims often have higher priority, with remaining assets allocated to other creditors on a pro rata basis.

Faillissement is distinct from surseance van betaling, a court-approved moratorium that temporarily stops debt payments and can be used to restructure a viable business. If restructuring is not possible, surseance may be converted into faillissement.

The effects of faillissement include a loss of control over the debtor’s assets and, for individuals, various legal consequences and restrictions during the proceedings. The procedure ends when the bankruptcy estate is liquidated and the court issues a final disposition; in many cases, remaining debts may be discharged to the extent allowed by law. For companies, faillissement often leads to dissolution or restructuring under supervision.