Filing for bankruptcy - We help entrepreneurs close their business

Filing for bankruptcy in the Netherlands is possible when a BV can no longer meet its financial obligations. But bankruptcy is not always the best or fastest solution. In this guide, you’ll learn when bankruptcy makes sense, what the legal consequences are, the steps involved, and which safer alternatives may be available-often saving time, money, and personal risk.

Filing for bankruptcy: when is it the right choice?

In the Netherlands, filing for bankruptcy is a drastic step. It affects your BV, your creditors, and in some cases even your private assets. While many entrepreneurs think bankruptcy is the only option when debts become overwhelming, that is often not the case.

In many situations, a BV can still be dissolved through an accelerated liquidation (turboliquidation) - avoiding court involvement and significantly reducing risk and cost.

This article explains:

• What bankruptcy is
  
• Who can file for bankruptcy
  
• When a BV should consider bankruptcy
  
• How the court evaluates an application
  
• What alternatives exist that may be safer and faster
  

When filing for bankruptcy seems unavoidable

You should only file for bankruptcy when debts can no longer be paid, no restructuring is possible, and the BV is no longer viable.

Situations where bankruptcy is typically considered:

• The BV has multiple unpaid creditors
  
• Debt restructuring has failed
  
• The company is insolvent and cannot meet short-term obligations
  
• Payroll can no longer be met
  
• Creditors threaten legal action
  

Even in these situations, an expert assessment often reveals safer alternatives.

Who can file for bankruptcy?

Three parties can initiate a bankruptcy application:

1. The BV itself (voluntary bankruptcy)

If a BV cannot pay its debts and solvency will not improve, the board may file for bankruptcy.
The court reviews:

• Whether there are multiple creditors
  
• Whether at least one claim is due and payable
  
• Whether payment has ceased
  

2. One or more creditors

A creditor may request bankruptcy if:

• There are at least two separate debts
  
• One debt is due and payable
  
• Payment has stopped
  

In this case, a lawyer must file the petition on the creditor’s behalf.

3. The court

In some rare situations, the court can order bankruptcy during another legal process, such as enforcement proceedings.

The bankruptcy procedure (step-by-step)

Below is the standard insolvency procedure when a BV is declared bankrupt:

1. Bankruptcy petition filed

The petition is submitted by the BV, a creditor, or the court.

2. Court hearing and ruling

The court decides whether:

• The BV is insolvent
  
• A trustee (curator) must be appointed
  

If approved, the bankruptcy is officially declared.

3. Appointment of a trustee

The trustee:

• Takes over management of the BV
  
• Secures assets
  
• Reviews debts and contracts
  
• Represents the interests of all creditors
  

4. Inventory and investigation

The trustee:

• Determines all assets and liabilities
  
• Reviews the bookkeeping
  
• Identifies irregularities or mismanagement
  

5. Employee obligations

The UWV takes over salary payments from the bankruptcy date.

6. Verification meetings

Claims are reviewed and legitimized.

7. Sale of assets

The trustee sells:

• Inventory
  
• Equipment
  
• Cars
  
• Real estate
  
• Other valuable assets
  

Employees and secured creditors receive priority payments.

8. Investigation of improper management

If the trustee finds signs of:

• Improper management
  
• Fraud
  
• Missing administration
  
• Late filing of annual accounts
  

…then the DGA can be held personally liable.

9. Closure of the bankruptcy

Bankruptcy ends when:

• All assets are liquidated, or
  
• There are insufficient assets to continue
  

Does bankruptcy affect your private assets?

It depends on your legal structure.

Legal Entity	Private Liability?	Notes
Sole proprietorship	Yes	Full personal liability
VOF (general partnership)	Yes	All partners are jointly liable
CV (limited partnership)	Partial	General partners liable, silent partners not
BV / NV	Usually no	Except in cases of mismanagement
Association / Foundation	Usually no	Unless improper management is proven

When can a DGA become personally liable?

• Improper or negligent management
  
• No proper bookkeeping
  
• Not filing annual accounts on time
  
• Entering obligations the BV couldn’t meet
  
• Fraud or misleading creditors
  

Checklist  filing for bankruptcy: When bankruptcy may be appropriate

Use this simplified checklist:

Your BV has multiple unpaid creditors
No realistic chance of recovery
Debt restructuring is impossible
Assets are insufficient to pay obligations
Payroll or taxes cannot be paid
A creditor threatens legal action
You want court protection during liquidation

If several of these points apply - bankruptcy might be justified.

Unsure whether bankruptcy is the right path?
Plan a free and non-binding consultation.
Together we determine the safest fiscal and legal solution for your situation.

Is bankruptcy always necessary? (Often not.)

In practice, 89% of troubled BVs can still be dissolved without bankruptcy, usually through:

• Accelerated liquidation (turboliquidatie)
  
• Regulated liquidation with creditors
  
• Debt settlements
  
• Structured exit plans
  

These alternatives avoid:

• Court involvement
  
• Trustee costs
  
• Investigations into management
  
• Risk of personal liability
  

In many cases, this results in a faster, cheaper, and more controlled closure.

Avoid unnecessary risks.
Plan a free and non-binding consultation with our specialists.

Frequently Asked Questions about  filing for bankruptcy (FAQ)

Can I file for bankruptcy without a lawyer?

Only if you file for your own BV. Filing for someone else’s bankruptcy requires a lawyer.

How long does bankruptcy take in the Netherlands?

Most cases last 6–12 months, depending on investigations, asset sales, and creditor disputes.

Is bankruptcy the same as dissolving a BV?

No. Dissolution is voluntary and can be fast. Bankruptcy is a court procedure with far-reaching consequences.

Can the DGA become personally liable?

Yes, if the trustee concludes improper management, such as lack of bookkeeping or incurring debts irresponsibly.

Can employees claim their salary after bankruptcy?

Yes. UWV covers salaries from the date of bankruptcy.

Is bankruptcy reversible?

Rarely. Only in cases where debts are completely paid, or a successful appeal is granted.

Can bankruptcy be used strategically?

Only when legal conditions are met. Misuse leads to severe sanctions and liability.

Conclusion: Bankruptcy is a last resort - not your only option

Filing for bankruptcy is possible when your BV is insolvent, but it should only be done after expert assessment. In many cases, faster and safer routes exist, such as liquidation or restructuring.

At OntbindenBV.nl, we guide entrepreneurs through the safest and most efficient exit strategy-whether that is bankruptcy or a better alternative.

Want clarity today?
Request a free consultation and discover the best solution for your situation.

About the author &  filing for bankruptcy

Peter Brouwers
Founder of OntbindenBV.nl
Specialist in BV dissolution, liquidation, insolvency guidance and DGA structures since 2012.