As a creditor, experiencing an insolvency can cause financial distress. In Europe, due to the many different cultures and legal systems, it can create complex outcomes and legal strategies. At Bierens, we have a specialized insolvency practice comprised of attorneys that are regularly appointed as trustees by the courts. They have extensive knowledge and experience with settling bankruptcies. Bottom line, we know how to deal with bankruptcies and insolvencies. If your customer has gone bankrupt, don’t wait, contact us now!
A few tips when your customer goes bankrupt?
- Agree to a reservation of ownership. You can agree to your contract or general terms conditions that you deliver under the retention of title. This means that the goods remain legally your property until your customer has paid all of the invoices. Only when the full purchase price has been paid, your customer is the owner of the goods. As long as you are legally the owner of the goods, you may collect these goods. This is the case in the event of a bankruptcy. As a creditor, you can retrieve the goods from the bankrupt company.
- Agree to a right of pledge. You can agree that a right of pledge will be established on the inventory, stock, debt receivables, shares of your company.
- If your customer consequently fails to fulfill their payment obligation, you have the right to sell these goods so that you are paid with the proceeds of this. This also applies when your customer goes bankrupt.
- To enforce a payment, a creditor needs to seize the assets of the debtor.