Filing for bankruptcy in Belgium: procedure, consequences and alternatives
Bankruptcy is a drastic legal condition that has far-reaching consequences for both the debtor and creditors. In Belgium, bankruptcy is declared by the corporate court when a company can no longer pay its debts and its credit is shaken.
Who can go bankrupt?
In Belgium, any company - self-employed, corporate or non-profit - can be declared bankrupt when it can no longer pay its debts on time (cessation of payments) and has lost its credit. Individuals who do not operate as entrepreneurs cannot become bankrupt but can apply for a procedure of collective debt settlement.
Corporate court proceedings
Bankruptcy is filed via petition to the corporate court. The court appoints a trustee who liquidates the company's assets and distributes the proceeds to creditors. The debtor loses control of his assets.
Alternatives to bankruptcy
Before proceeding to bankruptcy, there are alternatives: judicial reorganization (WCO) allows a company to reschedule its debts under the supervision of the court while continuing to operate. Novex Lawyers will advise you on the most appropriate procedure.
Company in trouble? Contact Novex Lawyers for legal advice in corporate court.