Bankruptcy Act

TITLE 1 BANKRUPTCY

Chapter 4 Positions after the Declaration of Bankruptcy and the Administration by the Liquidator

Article 87 Taking the bankrupt debtor into custody (detention)
- 1. The District Court may in the bankruptcy order or at any time thereafter, yet in the latter event only upon a recommendation of the magistrate ('rechter-commissaris') or upon the request of the liquidator ('curator') or of one or more of the creditors after having heard the magistrate ('rechter-commissaris'), order that the bankrupt debtor is to be held in custody because he has not complied with the obligations imposed on him by law in relation to his bankruptcy or because there are well-founded reasons to fear that he will not comply with such obligations; in such event, the bankrupt debtor will be held in custody either in a detention centre or in his own home under the supervision of a police agent appointed to conduct police duties or of another civil servant falling within a category designated for this purpose by the Minister of Justice
- 2. This court order shall be executed by the Public Prosecution Service.
- 3. The court order will be valid for not more than thirty days, calculated from the day on which it was executed. At the end of this period, the District Court may extend the court order for not more than thirty days upon the recommendation of the magistrate ('rechter-commissaris') or upon the request, and after having heard the magistrate ('rechter-commissaris'), as referred to in paragraph 1. Afterwards, further extensions may be granted in the same way, each time for not more than thirty days.
- 4. The civil servant designated by the Public Prosecution Service to assist in the enforcement of the court order shall be empowered to enter any place to the extent that this is reasonably necessary for the performance of his duties.

Article 88 Release from custody
- 1. Upon a recommendation of the magistrate ('rechter-commissaris') or upon the request of the bankrupt debtor, the District Court may release the bankrupt debtor from custody, with or without imposing any bail to ensure that he will appear at all times after being summoned therefore.
- 2. The amount of bail shall be determined by the District Court and will accrue to the liquidation estate in the event that the bankrupt debtor fails to appear.

Article 89 [repealed on 01-01-2002]

Article 90 Appearance required of a bankrupt debtor who is detained
- 1. In each situation where the presence of the bankrupt debtor is required in connection with a particular activity relating to the liquidation estate, he shall, if he is detained, be brought from the place where he is held in detention to the place where his presence is required, always on the instructions of the magistrate ('rechter-commissaris')
- 2. This instruction shall be executed by the Public Prosecution Service.

Article 91 Bankrupt debtor needs consent to leave his residence
During the bankruptcy the bankrupt debtor may not leave his residence without the consent of the magistrate ('rechter-commissaris').

Article 92 Liquidator must immediately take possession of all assets and records of the bankrupt debtor
Immediately after the liquidator ('curator') has accepted his appointment, he shall take all necessary and proper steps to safeguard the liquidation estate. He shall immediately take possession of and give a receipt for any records and other data storage media, money, valuables, negotiable securities (stock market instruments) and other valuable instruments. He is entitled to deposit money to the appropriate judicial authority according to the law.

Article 93 Sealing off the assets of the liquidation estate
- 1. If the liquidator ('curator') or the magistrate ('rechter-commissaris') considers this to be desirable, the liquidator ('curator') may immediately order a notary to seal off the liquidation estate.
- 2. The assets referred to in Articles 21, under point (1), and 92 and also the objects required to pursue the enterprise of the bankrupt debtor, if his enterprise is to be continued, shall not be sealed, but shall be briefly listed in the protocol.

Article 93a Right of the liquidator to enter places in the performance of his duties
The liquidator ('curator') is empowered to enter any place to the extent that this is reasonably necessary for the performance of his duties. The magistrate ('rechter-commissaris') may give an authorisation as referred to in Article 2 of the General Act on Entry ('Algemene wet op het binnentreden').

Article 94 Inventory of the liquidation estate
- 1. The liquidator ('curator') prepares as soon as possible an inventory of the liquidation estate.
- 2. The inventory list of the liquidation estate may be drawn up by private deed and the valuation of the involved assets may be made by the liquidator ('curator'), yet the authorisation of the magistrate ('rechter-commissaris') is alwyas required for doing so.
- 3 The members of the provisional creditors committee are entitled to be present when the inventory is made.

Article 95 Assets not belonging to the liquidation estate are included in the inventory list
A list of the assets referred to in Article 21, under point (1°), shall be attached to the inventory; the assets referred to in Article 92 shall be included in the inventory.

Article 96 List of assets and liabilities and of the creditors and their claims
Immediately after the inventory list of the liquidation estate has been drawn up, the liquidator ('curator') shall prepare a list specifying the nature and amount of the assets and liabilities of the liquidation estate, the names and addresses of the creditors and the amount of the claims of each of them.

Article 97 Publication of the Inventory list and the list of creditors
- 1. Copies of the inventory list and the list referred to in the preceding Article, certified by the liquidator ('curator'), shall be available for public inspection, free of charge, at the office of the clerk of the District Court in whose district the domicile, the office or the place of abode of the bankrupt debtor is located, depending on whether the District Court which rendered the bankruptcy order is that of the address, office or place of abode of the bankrupt debtor.
- 2. The before mentioned documents are deposited free of charge.

Article 98 Continuation of the enterprise of the bankrupt debtor by the liquidator
The liquidator ('curator') may continue the enterprise of the bankrupt debtor. If a creditors committee has not been appointed, he needs the authorization of the magistrate ('rechter-commissaris') to proceed to such continuation.

Article 99 Opening of letters and telegrams; statements made in relation to the liquidation estate
- 1. In accordance with the charge and mandate referred to in Article 14, the liquidator ('curator') shall open letters and telegrams addressed to the bankrupt debtor. Letters and telegrams that do not relate to the liquidation estate shall be handed over to the bankrupt debtor without delay. After having been informed by the clerk of the court in accordance with Article 14, the mail transport company or mail transport companies that have been designated as provider of general mail services and other certified mail transport companies as meant in the Mail Act 2009 ('Postwet 2009'), are obliged to deliver to the liquidator ('curator') the letters and telegrams addressed to the bankrupt debtor until the liquidator ('curator') or the magistrate ('rechter-commissaris') has released them from this obligation or they have received a notification as meant in Article 15. The mandate of the court, granted to the liquidator ('curator') in order to be permitted to open letters and telegrams, shall lose its effect on the moment on which the obligation of the mail transport companies to deliver letters and telegrams to the liquidator ('curator') ceases to exist pursuant to the preceding sentence.
- 2. Notices of terms, demands, writs, declarations and other statements in respect of the liquidation estate must be made by and to the liquidator ('curator').

Article 100 Maintenance allowance for the bankrupt debtor
The liquidator ('curator') may, in accordance with the given circumstances, distribute a sum to be set by the magistrate ('rechter-commissaris') to the bankrupt debtor for his maintenance and that of his family unit.

Article 101 Right of the liquidator to dispose of assets from the liquidation estate
- 1. The liquidator ('curator') may dispose of assets that belong to the liquidation estate if and to the extent that this is necessary to cover the costs of bankruptcy or if and to the extent that assets could not be retained (preserved) without loss to the liquidation estate.
- 2. The provisions of Article 176 shall apply.

Article 102 Money and valuables to be kept in safe custody; investment of cash surplus
- 1. The liquidator ('curator') shall keep in safe custody all money, valuables, negotiable securities (stock market instruments) and other valuable instruments, unless some other means of custody has been determined by the magistrate ('rechter-commissaris').
- 2. Cash not required in relation to the administration of the liquidation estate shall be invested by the liquidator ('curator') in the name of the liquidation estate in a way approved by the magistrate ('rechter-commissaris').

Article 103 Right of the liquidator to dispose of money and other valuables
The liquidator ('curator') may only dispose of money, valuables, negotiable securities (stock market instruments) and other valuable instruments that are kept in safe custody by a third party on account of an instruction of the magistrate ('rechter-commissaris'), and he may only dispose of invested money, by means of documents certified by the magistrate ('rechter-commissaris').

Article 104 Right of the liquidator to enter into settlement agreements
The liquidator ('curator') is entitled, after having heard the advice of the creditors committee, if any, and with the approval of the magistrate ('rechter-commissaris'), to enter into settlement agreements or agreements to end a dispute.

Article 105 Obligation of the bankrupt debtor to appear and to provide information
- 1. Whenever the bankrupt debtor is called upon to appear, he must appear before the magistrate ('rechter-commissaris'), liquidator ('curator') or creditors committee, and provide them with all requested information.
- 2. In the event of a bankruptcy of a person who is married under a community of property or who has entered into a registered partnership under a community of property, the obligation to provide information rests upon each spouse or registered partner, insofar as he has acted.

Article 106 Provisions applicable in respect of Directors and Supervisory Directors of a bankrupt legal person
In the event of the bankruptcy of a legal person, the provisions of Articles 87 up to and including 91 apply to the Directors of the legal person, and the provisions of Article 105, paragraph 1, apply to the Directors and Supervisory Directors of the legal person.

Article 107 Provision of copies by the clerk of the court
- 1. The clerk of the court must hand to each creditor, who requests so, against payment a copy of the documents which are deposited or held at the office of the clerk of the court pursuant to any provision of the present Act.
- 2. The clerk of the court must also provide anyone, who requests so, against payment with a copy of the documents that are available for inspection at the office of the clerk of the court pursuant to any provision of the present Act.