The benefits of an amicable settlement of debts
Interview with Arie Hovestad, operational manager at Zuidweg & Partners
In this podcast, Jacqueline talks to Arie Hovestad, manager of operations at Zuidweg & Partners. Arie explains why it is beneficial for both debtors and creditors to reach an amicable debt settlement.
The restructuring phase starts with the restructuring proposal against final discharge to the creditors. As soon as it is clear how high the total debt is and how much the entrepreneur can repay over the coming years, this amount will be offered to the creditors against final discharge. If the creditors agree with this proposal, it means that they will cancel the remaining debts at the end of the restructuring phase. This phase lasts 5 years for entrepreneurs who continue their business, and 3 years for entrepreneurs who stop their business.
The restructuring proposal that we make to the creditors means that the amount that we offer to the creditors is the maximum amount that the entrepreneur can repay. Furthermore, it is up to us to show the creditors why it is the best option for them to accept the proposal agreement to go. If creditors disagree with the proposal, they have little chance of getting more than what has been offered in the future. If the creditors refuse the agreement and none compulsory agreement amicable debt relief is considered to have failed. Then the entrepreneur enters the legal debt settlement, the so-called WSNP process. There is a good chance that the creditors will be offered less or nothing at all. The majority of creditors therefore agree to the amicable restructuring proposal.