schuldensanering

Schuldensanering is a set of measures intended to restore a debtor’s solvency by restructuring and reducing debts. The goal is to enable the debtor to meet obligations over time and, where possible, prevent liquidation or insolvency.

The concept covers both individuals and organizations. Typical instruments include negotiations that lead to a debt settlement with creditors, the restructuring of payment terms, and the partial forgiveness or conversion of debt into equity. In some jurisdictions, debt relief may be achieved through formal procedures such as a moratorium on payments or court-supervised reorganizations. In the Netherlands, examples include surseance van betaling (temporary suspension of payments) and the Schuldsanering voor natuurlijke personen (WSNP), a court-administered path to debt relief for individuals.

Process and actors vary by jurisdiction but generally involve: an assessment of the debtor’s financial situation; negotiation with creditors or the appointment of an administrator or trustee; the formulation of a restructuring plan; and approval by creditors and, if applicable, by a court. The plan specifies how debts will be paid, restructured, or discharged and outlines the timetable for implementation.

Outcomes depend on success. If a restructuring plan is approved and implemented, the debtor may regain solvency and, in some cases, receive partial debt relief. If negotiations fail or the debtor cannot meet terms, insolvency or liquidation may follow, with creditors pursuing available remedies.

See also: debt relief, insolvency, bankruptcy, debt restructuring.