Bankruptcy
A bankruptcy is a legal status in which a company, institution or individual is no longer able to meet its financial obligations and pay its debts. In the Netherlands, bankruptcy is governed by the Bankruptcy Act.
Consequences of bankruptcy
When an entity is declared bankrupt, a receiver is usually appointed to manage and liquidate the debtor's assets to satisfy creditors. The goal is to protect the financial interests of all parties involved and ensure a fair distribution of available funds.
Bankruptcy can occur for a variety of reasons, including financial difficulties, inability to meet payment obligations or lack of viability of a business. It can lead to the closure of the business, sale of assets and even personal financial consequences for the owners, depending on the legal structure of the business.
