Introduction

Introduction

On February 22 2018 the Supreme Court delivered an important judgment regarding the relationship between:

• privileged creditors in the framework of reorganisation proceedings; and
• secured creditors in the event of a subsequent bankruptcy.

Privileged claims

Introduction

As of 17 April 2017, the creditors of a company that has been declared bankrupt must electronically file their declaration of debt using the Central Solvency Register (Regsol).

In the past, administrators of commercial companies with limited liability (eg, NV/SA and BVBA/SPRL) were not seen as 'merchants' under Belgian law. In other words, the administration of commercial companies was not seen as a commercial act. As a result, such administrators could not (personally) be declared bankrupt.

In the past, administrators of commercial companies with limited liability (eg, NV/SA and BVBA/SPRL) were not seen as 'merchants' under Belgian law. In other words, the administration of commercial companies was not seen as a commercial act. As a result, such administrators could not (personally) be declared bankrupt.

In February 2018 the legislature took steps to improve the follow-up monitoring of companies in financial difficulty and strengthen the fight against inactive companies (for further details please see "Stricter scrutiny of inactive companies").

IntroductionProtection under Business Continuity ActPost-insolvency proceedingsComment

Introduction

The Business Continuity Act of January 31 2009, amended in 2013, provides for specific (court-supervised) restructuring proceedings, during which the company (or debtor) is protected against its creditors' claims so that it can reorganise its business.

Easy access and protection

Background
Legal developments
Comment


Historically, Belgian insolvency legislation has applied only to entities involved in commercial activities. However, recent jurisprudence and upcoming legislative changes will result in important amendments that are intended to broaden the scope of the existing legislation.