You are here:
04 May 2018 / news

Reform of Belgian insolvency law as of 1 May

As from 1 May 2018, a comprehensive reform of the Belgian insolvency framework entered into force. The old framework consisted of two separate laws governing respectively bankruptcy and judicial reorganization. The new legal framework incorporates both regimes in Book XX of the Belgian Code of Economic Law.

Reform of Belgian insolvency law as from 1 May

Innovations

One of the most important innovations is the expansion of the scope of the insolvency regime. Previously the scope of bankruptcy proceedings was limited to commercial entities. The scope has now been expanded to include any “enterprise” (subject to limited exceptions). This means that entities that were exempted under the old regime because of their “civil” character, such as the professions, VZW/ASBL, certain entities without legal personality etc. can now be made subject to insolvency proceedings.

Other important reforms include: 

  • modernizing of the proceedings, making them largely electronic
  • improvement of the legal status of an amicable agreement outside formal insolvency proceedings
  • introducing a coherent set of rules regarding director liability

Debtor in possession

One other noteworthy amendment is the protection awarded by the new insolvency regime to security interests granted during a judicial reorganization procedure. Under the old law there was some doubt whether security granted during a judicial reorganization procedure was enforceable against the trustee in subsequent bankruptcy proceedings, in particular in cases where new security was being granted for existing debt which was automatically declared unenforceable. A new provision now affords explicit protection for such security, aiming to improve debtor in possession financings.

 

Overall, we expect the reforms to be welcomed by Belgian insolvency practice as the new regime is a set of coherent rules that is in line with recent international trends. For further information, please contact the members of our Banking & Finance or Restructuring & Insolvency teams.



French payroll taxes as of 1 January 2019

French payroll taxes as of 1 January 2019

The introduction of French payroll taxes for French tax residents as of 1 January 2019 is a current eye catcher as it also impacts foreign based (e.g. Belgian... read more
Excellent results Loyens & Loeff in Chambers Global 2019 rankings

Excellent results Loyens & Loeff in Chambers Global 2019 rankings

Loyens & Loeff holds on to its top ranking position as leading business law firm in the Chambers Global 2019 rankings. read more
Belgian UBO register: deadline for registration postponed until 30 September 2019

Belgian UBO register: deadline for registration postponed until 30 September 2019

On 13 February 2019, the Federal Public Service of Finance announced on its website that the deadline for the registration in the UBO register has been postponed... read more
Stay informed

Don't miss out. Stay up to date about our latest news and events.

Subscribe