Article 6 of the Dutch Bankruptcy Act (Faillissementswet) sets out how the district court deals with a bankruptcy petition. The court hears the petition urgently and declares the debtor bankrupt if it is summarily shown that the debtor has ceased paying (opgehouden te betalen) and, if a creditor filed the petition, that the creditor’s claim exists.
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What must be shown?
Only a summary showing, not full proof. In case law, a debtor has ceased paying if there are at least two creditors (plurality, pluraliteit) and at least one claim is due and unpaid. The second claim, often called the supporting claim (steunvordering), may come from another creditor. The size of the debts or the value of the debtor’s assets is not decisive.
How does the hearing work?
A creditor files the petition through a lawyer. The court summons the debtor, who is given the opportunity to be heard, usually within a few weeks. The hearing is short and the court gives judgment quickly, often on the same day. If bankruptcy is declared, the court appoints a bankruptcy trustee (curator) and a supervisory judge (rechter-commissaris).
How can a debtor defend itself?
By showing that the claim is seriously disputed, that there is no plurality of creditors, or that it is in fact still paying. A substantive dispute about the claim belongs in ordinary proceedings, so a well-founded dispute can lead to dismissal of the petition. Paying the petitioning creditor before the hearing usually ends the case, which is why bankruptcy petitions are also used as a debt collection tool.
What happens after the order?
The bankruptcy takes effect from 00:00 on the day of the judgment (Article 23 Bankruptcy Act). The debtor loses the right to manage and dispose of its assets. Appeal is possible, but the term is short: 8 days after the judgment.
Frequently asked questions
Can I file for bankruptcy over one unpaid invoice?
Yes, if you can also show a second creditor. One unpaid claim without others is not enough.
Does an appeal suspend the bankruptcy?
No. The bankruptcy order is enforceable immediately, even if an appeal is lodged.
Related terms
- Article 1 Dutch Bankruptcy Act (bankruptcy petition)
- Bankruptcy
- Debt collection costs
- Article 37 Dutch Bankruptcy Act (reciprocal contracts in bankruptcy)
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