What to do as a creditor in a bankruptcy?

In the previous blog we discussed how to find out if a company has been declared bankrupt. In this article we continue with what you, as a creditor, can do, what rights you have, the role of the trustee and the supervisory judge, and how a bankruptcy may end.

What can you do as a creditor?

As a creditor, you have several options when a company goes bankrupt:

1. Filing a claim: As soon as bankruptcy is declared, you can file your claim with the trustee. This is usually done by completing a (digital) form and attaching supporting documents. Often it is also possible to send an email to the trustee’s office. Always include the underlying documentation so the trustee can verify your claim.
2. Communication with the trustee: The trustee or one of their staff members is your main point of contact during the bankruptcy. They will inform you about the progress through periodic reports. Reports of bankruptcies can also be found online in the Dutch Central Insolvency Register.
3. Creditors’ committee: In large-scale bankruptcies, or when the case lends itself to it, a creditors’ committee may be set up. As a creditor you can participate. Such a committee has several powers, including the right to certain information, the ability to provide advice and, in some cases, the obligation to approve specific actions by the trustee.

The role of the trustee and the supervisory judge

Trustee

The trustee is appointed by the court and is responsible for managing and settling the bankruptcy. Their tasks include:

• Inventory of assets: preparing a complete overview of all assets and liabilities of the bankrupt company.
• Managing the estate: handling the assets and selling them where possible to pay creditors.
• Communication with creditors: informing creditors about progress and repayment prospects through public reports.

Supervisory judge

The supervisory judge oversees the work of the trustee and ensures the bankruptcy is handled according to the law. Their tasks include:

• Supervision: checking whether the trustee is carrying out their duties properly and resolving disputes.
• Approval: granting approval for certain actions by the trustee, such as selling significant assets.

How can a bankruptcy end?

A bankruptcy can end in different ways:

• Settlement (composition): the creditors and the bankrupt company may reach a settlement regarding the debts.
• Liquidation: the company’s assets are sold and the proceeds are distributed among the creditors.
• Termination due to lack of assets: if there are no or insufficient assets to distribute, the bankruptcy ends.

More information

Do you have further questions about bankruptcy in the Netherlands or about your rights as a creditor? Please feel free to contact us.