Solving debts: the BV (private limited company)

Liability for debts

A BV is a legal entity (rechtspersoon). This means that in principle you are not liable for company debts. There are some exceptions to this rule. Directors are liable if there has been misconduct, or if the BV has not been registered with the Business Register yet. Read more about directors' liability.

Do you, as a director, own at least 5% of the shares? In that case, banks will often ask you to co-sign privately for loans. This makes you personally liable for repaying those loans if the bv fails to do so.

Solutions for business debts for a BV

If you have business debts, there are several options:

1. Payment agreement 

When in debt or arrears, contact your creditors to explain the situation. And make arrangements together about payment. You may be able to get a postponement or agree on a payment schedule. This can also be done with the Netherlands Tax Administration and, for example, your bank or other financiers.

2. Court Approval of a Private Composition (Prevention of Insolvency) Act (WHOA)

Are you not able to solve the financial problems yourself but want to continue the business? Then you can try to avoid bankruptcy using the Court Approval of a Private Composition (Prevention of Insolvency) Act (Wet Homologatie Onderhands Akkoord, WHOA). You come to an arrangement with your creditors. Not every creditor has to agree. If the court approves the arrangement, it then applies to all creditors. So you can continue your business. 

3. Bankruptcy and suspension of payment

Is the BV temporarily unable to pay its debts? You can file for a suspension of payment from the court. The BV will not have to pay its creditors for a period of time. In most cases, suspension of payment ends in bankruptcy.

If you can no longer come to a payment arrangement with your creditors, the court can declare the BV bankrupt. The court appoints a curator, who will take over all decisions and money matters. Before the court decides, a petition for bankruptcy must be made. You can do this yourself, but a creditor may also file for bankruptcy.

Note: if a creditor files for your BV's bankruptcy, you can try to avoid it by using a WHOA agreement. 

Sometimes it is possible to restart your business after bankruptcy.

Options for resolving private debts

Did you co-sign for a business loan? And are you now in private debt due to your BV? There are several options for solving your debts:

1. Amicable settlement

You can apply for an amicable settlement to your municipality. An amicable settlement means that you look for a way out of your debts with support from municipal debt counselling. For example, by payment agreements, refinancing, or debt mediation. After the settlement trajectory, you will be free of debt.

2. Natural Persons Debt Restructuring Act (WSNP)

If the amicable settlement fails, you can appeal to the district court for admission to the Natural Persons Debt Restructuring Act (Wet schuldsanering natuurlijke personen, Wsnp). In most cases, you will have to end your business. A WSNP process takes 18 months. After debt restructuring, you will be free of debt.

Help dealing with debt

You do not have to solve your debts on your own. Use the dealing with debts step-by-step plan. In the next step, we tell you which organisations can help you. Or call the KVK Advice Team: 088 585 22 22.