Debt collection in the Netherlands: reminder, confiscation and bankruptcyWednesday, 21 June 2017
The success of debt collection in a foreign jurisdiction often depends on knowledge about the debtor and the rate of action, especially in (the face of) bankruptcy of the debtor. In this process, a reliable local partner is crucial.
In the Netherlands, the restrictions to (provisory) confiscation of goods of the debtor are limited and the rules of law are considered to be relatively flexible. An important requirement however, is that the creditor subsequently will have to litigate.
In this regard, it is relevant that European law, international treaties and the law of The Netherlands allow for foreign judicial decisions to be recognized in The Netherlands. When recognized, foreign judicial decisions can be enforced in the Netherlands.
Alternatively or additionally, filing an application for bankruptcy is often used to increase pressure and enforce payment. Under Netherlands Insolvency law, the judicial review of insolvency is limited and marginal. Therefore, a bankruptcy is quite easy to provoke.
The lawyers of BANNING have extensive experience in this field and are experts in debt collection, confiscating goods and litigation (recovery, bankruptcy, director’s liability, etc.). We are happy to assist in the collection of debts in the Netherlands.