Solving debts - the eenmanszaak (sole proprietorship)

Liability for debts

You are personally liable for all activities and finances in your sole proprietorship. There is no difference between your private and business capital. Your business creditors can claim your private assets. And private creditors can also claim your business assets.

Liability of your partner

Are you married in community of  property without a prenuptial agreement? In that case, your partner is also liable for debts. IWith prenuptial or partnership agreements, you can limit the risk of your partner being liable. However, you must then follow the rules you have agreed in the prenuptial agreement.

Did you have a business before 1 January 2018, and did you marry or enter into a partnership with limited community of property? In that case, the business is outside your communal property, and your partner is not liable. Are you starting a business while you are married or in a registered partnership with community of property? In that case, the business is inside the communal property, and your partner is liable.

Debt resolution

These are the 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. 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.

3. 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.

4. 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. 

5. Bankruptcy and suspension of payment

Are you temporarily unable to pay your debts? You can file for a suspension of payment from the court. You will not have to pay your 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 you 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 bankruptcy, you may try to avoid it by using the Wsnp or a WHOA agreement. The advantage of the WSNP and WHOA is that you are free of debt afterwards. If your business goes bankrupt, your debts remain and you remain liable for them.

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 on 088 585 22 22.