What is suspension of payments?
Suspension of payments is a temporary deferral of payments granted by a court to a business that cannot pay immediately but appears viable. An administrator is appointed to act jointly with the management.
Short answer: your existing claims are frozen, but supplies made after the suspension of payments must, in principle, still be paid for as normal.
What changes for you?
| Issue | Effect |
|---|---|
| Claims predating the suspension of payments | Frozen; no individual enforcement action |
| New supplies | Payable, but require advance payment or security |
| Preferential creditors | The suspension does not apply to them, for example the tax authorities |
| Security interests | Pledgees and mortgagees retain their position |
| Duration | Granted provisionally, then extended or converted |
The reality: often an intermediate step
A large proportion of suspensions of payments still end in bankruptcy. Treat a suspension of payments as an urgent risk warning, not a reassurance.
Action list for a suspension of payments
- Block further supplies on credit with immediate effect.
- List outstanding amounts and establish the status of any retention of title.
- Contact the administrator in writing.
- Consider offering to continue supplying against advance payment.
- Monitor the notices: conversion to bankruptcy can happen within weeks.
- Assess whether a composition with creditors is being offered and what percentage would be paid out.
Suspension of payments versus bankruptcy
- Purpose: suspension of payments aims at recovery; bankruptcy at liquidation.
- Office-holder: an administrator alongside the management, versus a bankruptcy trustee in place of the management.
- Attachment: bankruptcy places all assets under a general attachment.
- Outcome: a composition with creditors and a business restart, or bankruptcy after all.
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Sources and scope
Examples and policy choices in this article are illustrative, not a current quotation, fixed standard or financial or legal advice. The editorial revision date relates to the summary, structure and source references; it is not a reference date for the underlying data.
| Primary source | What is it used for? |
|---|---|
| De Rechtspraak — Central Insolvency Register | Official insolvency notices and available public reports; check the relevant entity and the date of the court ruling. |
| CBS (Statistics Netherlands) — bankruptcies, key figures | National bankruptcy statistics with reporting periods, definitions and explanatory notes. |
| KVK (Dutch Chamber of Commerce) — checking business partners | Company identification and checks on business partners. |
Source links support the topic mentioned, but do not automatically substantiate all percentages, time frames or examples in this article. Check current terms and rules with the responsible authority.
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