Updated insolvency procedure finds support in Senate
Today, the Senate approved a legislative proposal that will make it easier to settle insolvency cases. Minister for Legal Protection Dekker: ‘The revamped insolvency procedure is an up-to-date solution. You will soon be able to make better use of the possibilities afforded by working online. This procedure will limit the costs incurred by society over insolvency cases.’
The receiver and delegated judge will be given greater freedom to produce custom solutions. In addition, the insolvency register will be improved. Any measure that makes the procedure quicker and more efficient is of great benefit to the parties involved.
At present, consumers and entrepreneurs sometimes even have to go so far as phoning the court to check if a company is insolvent. In future, quick and easy access to the insolvency register can prevent unnecessary losses. An example of this is where someone is unaware that a company is bankrupt and pays in advance.
Another potential benefit of this legislative proposal is that the online provision of information will provide creditors with quicker access to important decisions by the judge; the permission to sell the insolvent company’s stock, for instance. Creditors also want to be aware of the insolvency judgement quickly, so they are able to safeguard their interests.
Much information is currently still provided in paper form, which costs the receiver a great deal of time. The use of digital tools will make this quicker and easier. This also applies to meetings, for instance: they will be no longer physical but electronic.