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Get remission of debts in the event of bankruptcy? It is possible for natural persons

Elise Strauven – September 2021 – As a result of the implementation of the reformed Belgian Insolvency Act[1], a bankrupt natural person, can obtain remission of his (remaining) debts.

This is particularly interesting for (daily) managers, CEO’s or sole proprietaries or single person businesses.

A formal request for remission should be filed before the competent Commercial Court, either at the time of the bankruptcy declaration or after the publication of the insolvency judgment in the Belgian Official Gazette. In any case, the request must be prior to the hearing at which the court must rule on the closure of the bankruptcy.

Interested parties, including the public prosecutor, the creditors, and the trustee, may oppose to the request. They can ask for the remission to be granted only partially or even refused. They will have to prove that the debtor-bankrupted has committed serious errors that have contributed to the bankruptcy.

If you have filed a request for remission as a bankrupt natural person and there is no opposition, the Commercial Court must, in principle, grant the remission in full.

Would you like to submit a request for remission? Contact us for more information.

 

[1] Artikel XX.173 van de Wet houdende invoeging van het Boek XX “Insolventie van ondernemingen”, in het Wetboek van economisch recht, en houdende invoeging van de definities eigen aan Boek XX en van de rechtshandhavingsbepalingen eigen aan Boek XX in het Boek I van het Wetboek van economisch recht, BS 11 september 2017.

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