Best Bankruptcy Lawyers in Hasselt

About Bankruptcy Law in Hasselt, Belgium

Bankruptcy in Hasselt is governed by Belgian federal law and handled locally by the Enterprise Court of Limburg - Hasselt division. The key legal framework is Book XX - Insolvency of Enterprises of the Code of Economic Law. This framework applies to all enterprises, including companies and self-employed individuals. When a business is no longer able to pay its debts as they fall due and its credit is shaken, the court can open a bankruptcy, appoint a court-supervised trustee, and organize the orderly liquidation and distribution of assets to creditors. Belgium also offers restructuring tools to preserve viable businesses, most notably the judicial reorganization procedure, which aims to restore continuity through an amicable settlement, a collective plan, or a transfer of activities.

Why You May Need a Lawyer

A lawyer can be crucial at many points in the life cycle of financial distress and bankruptcy:

- Early warning and prevention - Assess cash-flow viability, negotiate standstills, and structure out-of-court workouts before formal insolvency.

- Judicial reorganization filing - Prepare the petition, select the right track, secure a moratorium, and draft a realistic reorganization plan that meets legal requirements.

- Bankruptcy filing - Determine whether the legal test for bankruptcy is met, comply with the deadline to file, prepare the required documents, and manage directors duties.

- Directors and personal liability - Advise on risk areas such as wrongful trading, unpaid taxes and social security, mismanagement, and potential disqualification.

- Employment issues - Navigate collective dismissal rules, wage guarantee mechanisms, and transfer of undertakings in a sale of business.

- Contract and asset protection - Enforce retention of title, reclaim goods, preserve set-off rights, or defend against claw-back of suspect transactions.

- Creditor representation - File and defend claims in the Central Solvency Register, challenge the ranking of other creditors, or oppose a reorganization plan.

- Cross-border cases - Address jurisdiction and recognition under the EU Insolvency Regulation when there are assets or operations outside Belgium.

Local Laws Overview

- Competent court - Bankruptcy and judicial reorganization cases in Hasselt are heard by the Enterprise Court of Limburg - Hasselt division. A delegated supervising judge oversees each file.

- Legal test for bankruptcy - An enterprise can be declared bankrupt when it has ceased payments and its creditworthiness is shaken. Directors of a distressed enterprise must file within one month of the cessation of payments unless a judicial reorganization is sought in time.

- Who is an enterprise - Since 2018, the definition includes companies, non-profit organizations engaged in economic activities, and self-employed natural persons. Consumers who are not entrepreneurs follow a different track called collective debt settlement before the Court of First Instance.

- Filing and publicity - The opening judgment is published in the Belgian Official Gazette and recorded in the Central Solvency Register known as Regsol. From that moment, individual enforcement by creditors is replaced by the collective procedure.

- Trustee and estate - The court appoints a bankruptcy trustee who takes control of the bankruptcy estate, sells assets, verifies claims, and distributes proceeds according to legal priorities. A supervising judge monitors the process.

- Claims and ranking - Creditors must lodge their claims via Regsol within the deadline set by the court. Secured creditors such as mortgagees and pledgees, employees with wage privilege, and certain tax and social security claims benefit from legal priorities. Unsecured creditors share rateably in any remaining balance. Interest on unsecured claims usually stops as of opening.

- Transactions before bankruptcy - Certain acts made before bankruptcy can be challenged as voidable, especially if they unduly favored one creditor over others or were made when the enterprise was insolvent.

- Contracts - In judicial reorganization, counterparties cannot terminate solely because of the filing. In bankruptcy, the trustee may continue or terminate contracts if that benefits the estate.

- Directors duties and risk - Directors must keep proper accounts, avoid aggravating losses once insolvency is inevitable, and file in time. They can be held liable in cases of serious fault, wrongful trading, or in specific situations regarding unpaid social contributions and taxes. The court can order a management disqualification in severe cases.

- Natural persons and discharge - A bankrupt self-employed natural person may obtain a discharge of remaining debts after the liquidation, subject to conditions and exceptions such as maintenance obligations and criminal fines. Income protections and seizure thresholds set by law may apply.

- Judicial reorganization - This restructuring framework provides a court-supervised moratorium to reach an amicable settlement with some creditors, a collective agreement with a plan approved by creditors and homologated by the court, or a transfer of activities under court authority. New financing approved during the procedure may obtain special priority.

- Cross-border aspects - The EU Insolvency Regulation determines which member state has jurisdiction based on the center of main interests and ensures recognition of proceedings across the EU.

Frequently Asked Questions

What is the difference between bankruptcy and judicial reorganization

Bankruptcy liquidates a business that has ceased payments and lost credit. A trustee sells assets and distributes proceeds to creditors. Judicial reorganization is a rescue procedure that grants a temporary stay to negotiate an amicable deal, obtain approval for a repayment plan, or transfer viable activities. It aims to save the business rather than close it.

Who can be declared bankrupt in Hasselt

Any enterprise as defined by Belgian law can be declared bankrupt by the Enterprise Court of Limburg - Hasselt division. This includes companies and self-employed individuals. Public bodies are generally excluded.

How quickly must I file if my business is insolvent

Directors must file for bankruptcy within one month after the cessation of payments unless they have timely initiated a judicial reorganization that could restore continuity. Missing this deadline can increase the risk of personal liability.

What documents are needed to file for bankruptcy

Typical documents include the latest accounts, a list of assets and liabilities, details of creditors and debtors, contracts, employee information, tax and social security data, and corporate records. Your lawyer can prepare the petition and supporting annexes required by the court and Regsol.

What happens to employees if my company goes bankrupt

Employment contracts usually end unless the trustee continues the business temporarily. Employees have a statutory wage privilege and may receive payment via the wage guarantee mechanisms, subject to conditions. In a transfer of activities, some employees may transfer to the buyer.

Are directors personally liable for company debts

A company has separate legal personality, but directors can be held liable for serious management faults that contributed to bankruptcy, for specific unpaid social security and tax debts, or for wrongful trading if they aggravated losses when insolvency was unavoidable. Legal advice is essential to assess exposure and defenses.

Can I keep my personal assets if I am a self-employed individual

For a self-employed natural person, the bankruptcy estate generally includes both business and personal assets, subject to legal exemptions and seizure thresholds for certain income. After the procedure, a discharge of remaining debts may be available under conditions. Consult a lawyer to map what is protected and what is not.

How do creditors file their claims

Creditors must lodge claims via the Central Solvency Register Regsol by the court-imposed deadline stated in the opening judgment and published in the Belgian Official Gazette. Supporting documents should be attached. The trustee will verify claims and propose an admission or rejection that the court can confirm.

Can suppliers reclaim goods delivered before bankruptcy

Suppliers with a valid retention of title or who can identify goods that were not yet paid may, under conditions, reclaim them. Timing, documentation, and the state of the goods are crucial. Prompt legal action increases the chance of success.

How long does a bankruptcy take

It varies widely. Small liquidations can close within several months. Complex estates with litigation or asset sales can last years. The trustee reports periodically to the court and creditors on progress and distributions.

Additional Resources

- Enterprise Court of Limburg - Hasselt division for filings, hearings, and case information.

- Central Solvency Register Regsol for bankruptcy and reorganization filings, creditor claim submissions, and official notices.

- Belgian Official Gazette for publication of opening judgments and procedural deadlines.

- Federal Public Service Economy for policy and information on business law and insolvency.

- Federal Public Service Finance for information on tax claims and settlements.

- National Social Security Office for information on social contribution claims.

- Local Bar Association and Bureau for Legal Aid in Limburg for information on legal representation and possible pro bono or subsidized legal aid.

- OCMW - Public Centre for Social Welfare in Hasselt for social support and recognized debt mediation services.

- Entrepreneur support bodies in Limburg such as chambers of commerce and independent business federations for advisory support.

Next Steps

- Assess your situation - List debts, assets, ongoing contracts, employees, and pending litigation. Prepare recent financials and cash-flow forecasts.

- Seek early legal advice - Consult a lawyer experienced in insolvency in Hasselt to evaluate whether a judicial reorganization is viable or whether you must file for bankruptcy.

- Stabilize operations - Communicate with key creditors and suppliers, consider standstill agreements, and avoid transactions that could be challenged later.

- Prepare filings - Your lawyer will assemble the petition and annexes, coordinate Regsol submissions, and represent you at the Enterprise Court.

- Protect stakeholders - Address employee communication, statutory notices, and data protection. For directors, document decisions and preserve accounting records.

- For creditors - Monitor publications in Regsol, diarize claim deadlines, gather evidence, and consider security enforcement or retention of title where applicable.

- Consider funding and asset strategies - In a reorganization, explore fresh-money financing and potential asset sales. In bankruptcy, coordinate with the trustee about asset realization and distributions.

- Review eligibility for legal aid - If resources are limited, ask about subsidized legal assistance through the local legal aid bureau.

In all cases, timeliness is critical. Early, local, and specialized advice will maximize your options and minimize risks in Hasselt and the wider Limburg region.