Company in difficulty

Are you an entrepreneur facing financial challenges? You are not always required to file for bankruptcy immediately. If your payment difficulties are only temporary, and you believe recovery is feasible, you may apply for judicial reorganisation.

Judicial reorganisation offers struggling businesses a second chance, allowing them to continue operations and maintain employment. It also helps balance the economic interests of all parties involved, including creditors and third parties.   

There are three types of judicial reorganisation:

1. You may reach an amicable settlement with your creditors. This could involve a payment plan or partial debt forgiveness.
2. You may propose a reorganisation or payment plan to all creditors. If a majority of creditors approve, you reach a collective agreement.
3. You may try to find a buyer to take over the enterprise, preserve all or part of the jobs and repay all or part of the debts. This is referred to in law as a 'transfer under court supervision'.

• The judicial reorganisation procedure typically begins with a suspension period, during which creditor claims are temporarily put on hold.

• If your enterprise is granted judicial reorganisation and has outstanding debts with Brussels Fiscality, it is important to notify Brussels Fiscality of the reorganisation. 

• Debt recovery actions will then be suspended, and Brussels Fiscality can submit its claims to have the debts included in the reorganisation plan. 

Bankruptcy is a legal procedure for self-employed individuals and companies that are structurally unable to pay their debts and whose financial situation shows no prospect of improvement.

• At the request of creditors or the public prosecutor, or on the entrepreneur's own initiative, the Entreprise Court declares the bankruptcy and publishes the judgment in the Belgian Official Gazette.
• A curator (under Belgian law, a court-appointed insolvency practitioner) is designated to safeguard the company's assets, sell them, and distribute the proceeds among the creditors.
• Based on information from the curator and the Belgian Official Gazette, Brussels Fiscality prepares its claims. It enjoys a general preferential right. 

Contact your curator. A curator is always appointed in case of bankruptcy to oversee the liquidation process.