Suspension of payments

Suspension of payments is a deferment of debts for companies, foundations or associations that are in temporary financial difficulties. The court appoints an administrator to manages the company's affairs along with the director. A suspension of payments often leads to insolvency, but it not necessarily.

A suspension of payments offers various legal possibilities for reorganisation and/or cost reduction. A (forced) agreement can also be offered during the suspension of payments, as is the case in an insolvency. However, the suspension of payments does not work against preferential creditors such as the tax authorities (the Belastingdienst). A successful suspension of payments requires sound preparation. Heron Legal offers expert and tailor-made advice in preparing and applying for a suspension of payments.