Best Bankruptcy Lawyers in Ghent

About Bankruptcy Law in Ghent, Belgium

Bankruptcy is a legal process that helps individuals or businesses in Ghent, Belgium who are unable to pay their debts. The procedure, known as "faillissement" in Dutch, is governed by Belgian federal law and applied by local courts, such as the Commercial Court of Ghent. During bankruptcy proceedings, a court-appointed curator (trustee) manages the debtor's assets to ensure fair treatment of creditors. Bankruptcy aims to either discharge debts, restructure obligations, or fairly distribute available assets to creditors.

Why You May Need a Lawyer

Dealing with bankruptcy can be complex and stressful, especially when navigating legal procedures and protecting your interests. Common situations where legal advice is crucial include:

• Your business is facing insolvency and cannot meet its financial obligations.
• You are an individual overwhelmed by personal debts and cannot negotiate with creditors.
• You are a creditor seeking to recover outstanding debts from an insolvent business or individual.
• There are disputes regarding assets, liabilities, or the order of creditor payments.
• You need to understand legal rights and obligations if you are affected by bankruptcy proceedings.
• You want to explore alternatives to bankruptcy, such as debt mediation or judicial reorganization.

Local Laws Overview

Bankruptcy in Ghent operates under Belgian federal legislation, specifically the Bankruptcy Law and the Law on the Continuity of Enterprises (LCE), both enforced by local commercial courts. Some key aspects include:

• When Bankruptcy Applies: Bankruptcy applies when a business or individual trader can no longer pay debts and has lost creditworthiness. Private individuals who are not traders may use a specific procedure called collective debt settlement.
• Initiating Bankruptcy: Bankruptcies can be declared either upon the debtor’s own request or at the request of a creditor, pending evidence of insolvency.
• The Role of the Curator: A court-appointed curator takes charge of the assets, investigates the financial situation, and manages the distribution of assets among creditors.
• Protection from Creditors: Once bankruptcy is granted, creditors are generally prohibited from independently enforcing claims outside the bankruptcy proceedings.
• Consequences: The debtor may lose control over their assets, and bankruptcy records can affect credit status and future business activities. Directors may face investigations into their actions before bankruptcy.
• Alternatives: The LCE allows for judicial reorganization, which can provide a temporary relief and facilitate restructuring negotiations under court supervision.

Frequently Asked Questions

What is the difference between bankruptcy and judicial reorganization?

Bankruptcy (faillissement) involves liquidating assets to pay creditors, typically ending business operations. Judicial reorganization seeks to protect debtors from creditors temporarily, allowing time to propose a restructuring plan and maintain operations if possible.

Who can file for bankruptcy in Ghent, Belgium?

Traditionally, traders, self-employed individuals, and companies can file for bankruptcy. Non-trading individuals must apply for collective debt settlement, a different process for personal insolvency.

What happens to my assets after declaring bankruptcy?

After a bankruptcy declaration, a court-appointed curator takes control of your assets. Non-essential assets may be liquidated to pay creditors, while personal necessities may be excluded in some cases.

How does bankruptcy affect my employees?

Employees may lose their jobs if a business closes. In Belgium, employees’ wage claims hold preferential status among creditors, and they may receive support from the Belgian Social Security Fund.

Can creditors sue me after bankruptcy is declared?

Generally, individual legal actions by creditors are suspended once bankruptcy is declared. Claims must be filed with the curator within the bankruptcy process.

How long does a bankruptcy procedure take in Ghent?

The duration varies depending on the complexity of the case, number of creditors, and amount of assets. Proceedings may last several months to a few years.

Is it possible to keep my business running during bankruptcy?

In bankruptcy, the business usually ceases operations unless the curator decides to continue temporarily for asset preservation. Judicial reorganization is a more appropriate option if continuity is the goal.

What are the responsibilities of a director during bankruptcy?

Directors must cooperate fully with the curator and provide all necessary information. Failure to do so can result in legal sanctions, including personal liability for debts incurred through negligence.

Can bankruptcy be avoided?

Bankruptcy may be avoided by negotiating with creditors, seeking judicial reorganization, or using mediation services. Early legal advice increases the chances of finding alternatives.

Will bankruptcy affect my credit rating?

Yes, bankruptcy will negatively impact your credit rating and may appear in public credit and insolvency registers, affecting future business or financial activities.

Additional Resources

If you need more information or support related to bankruptcy in Ghent, these resources can help:

• The Commercial Court of Ghent - Handles bankruptcy cases and judicial reorganizations.
• Kruispuntbank van Ondernemingen (KBO) - The official business register for checking company statuses.
• Belgian National Chamber of Bailiffs - Information on debt recovery and creditor rights.
• Public Center for Social Welfare (OCMW) - Offers counseling and support for individuals facing debt problems.
• Legal Aid Offices (Bureau voor Juridische Bijstand) - Provides free or low-cost legal advice to eligible individuals.
• Federal Public Service Economy - Publishes bankruptcy statistics and regulations.

Next Steps

If you are facing bankruptcy or have questions about insolvency in Ghent, take the following steps:

1. Gather all relevant financial documentation, including debts, assets, contracts, and correspondence with creditors.
2. Consult a qualified bankruptcy lawyer based in Ghent who is familiar with local courts and procedures.
3. Discuss your situation openly and ask about possible alternatives to bankruptcy, such as mediation or restructuring plans.
4. Follow your lawyer's advice on how to communicate with creditors and fulfill your legal obligations.
5. Contact local legal aid services if you cannot afford a lawyer, to explore your options and obtain initial guidance.
6. Stay informed by reviewing reliable resources or attending informational sessions organized by local authorities.