Bankruptcy application

A bankruptcy application is a serious step. For an entrepreneur, it may involve their own bankruptcy, but also the bankruptcy of a debtor who does not pay. In both situations, it is important to quickly clarify which route is possible, which risks are involved and what consequences a bankruptcy has for the business.

Applying for your own bankruptcy

An entrepreneur can file for bankruptcy with the court themselves. A lawyer is not always required for this. Even so, legal advice beforehand is often sensible. Bankruptcy has major consequences, for example for ongoing contracts, employees, creditors, directors and the possible liability of those involved.

Before applying for your own bankruptcy, it is important to assess whether stopping is indeed the best option. Sometimes there are still other possibilities, such as payment arrangements, restructuring or a controlled termination of activities. We help you clarify those choices and prepare you for what happens if the court declares bankruptcy and appoints a trustee.

Applying for the bankruptcy of a debtor

If a debtor does not pay and no solution is reached, a bankruptcy application can apply pressure or may be necessary to protect your position. A lawyer is required to apply for the bankruptcy of another party. The lawyer files the petition with the court, after which the debtor is summoned to a hearing.

Court hearing

After a self-filed declaration or a petition by a creditor, the court usually hears the case in a closed session. The court assesses whether the debtor has stopped paying. In the case of an application by a creditor, it must also be sufficiently clear that this creditor has a claim.

It must also appear that several debts remain unpaid. A bankruptcy hearing is brief and leaves little room for extensive evidence. Proper preparation is therefore important. On the basis of the available documents and explanation, the court must be able to assess quickly whether the requirements for bankruptcy have been met.

How LVH Advocaten can help

LVH Advocaten helps entrepreneurs with bankruptcy applications and with defending against bankruptcy petitions. We assess the situation, map out the risks and determine which step best serves your interests. Clients benefit from our experience with bankruptcy proceedings and from our knowledge gained in trustee practice.

Are you considering applying for your own bankruptcy, do you want to apply for the bankruptcy of a debtor or do you need to defend yourself against a bankruptcy petition? Feel free to contact us. We will ensure that you quickly know where you stand and which next step is sensible.

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