WSNP trajectory - what does that mean for me?
If an amicable debt settlement is not possible, we are happy to help you apply for a statutory debt settlement in accordance with the Natural Persons Debt Restructuring Act (WSNP). The application is assessed by a judge. If the court admits you to the statutory regulation, this means that you will no longer go through your debt rescheduling process at Zuidweg & Partners, but at the court. The rules in the WSNP process are stricter than in the amicable process. Below we inform you about everything you need to know before you start the WSNP process.
Applications for the WSNP process
To be eligible for the WSNP, a petition to the court is required. Zuidweg & Partners is happy to help you with this. We know which documents you must enclose with the petition.
A judge will judge whether you will be admitted for the WSNP process. It is important that you are present for the session. Take into account some run-out. We advise you to prepare yourself at home for questions from the judge about the cause of your debts. Your presentation is important for your admission. If you do not speak enough Dutch, you must provide a translator yourself. You are also free to bring someone to assist you.
The administrator's task is to make an inventory of your debts, manage your estate and check whether you meet your obligations. If it appears that you have deliberately concealed debts or other circumstances, the court can decide to end your procedure, after which you can be declared bankrupt. This can also happen if, for example, you withhold income or do not pay the contribution to the estate. The administrator has an independent function and is not a social worker, but a supervisor.
The estate consists of everything that is of value and can be saved for your creditors in three years. All items that you have at the time of the judge's decision and everything that you still receive during the settlement will therefore fall into the estate. Expensive items such as a car, antiques, valuables, collections, caravan have to be sold. Part of your income must also be saved for the estate. A large part of your income does not go to your creditors. The starting point for this is an amount of 95% of the assistance standard (link to FAQ) and 100% on income from work. This can be corrected for high housing costs, additional health insurance and other necessary extra costs. The court determines the exact amount of the part of your income that should not be used for repayment. It's called this amount Release Amount (VTLB). You can keep child benefit. The money you save will go to your creditors after three years. The administrator's salary is still deducted there. This is € 51 per month for a single person and over € 61,50 for two people who live in community of property. If you receive money in excess of the Free To Let Amount during the scheme, this money will fall into the estate. So, for example, if you get an inheritance, get money back from the tax authorities, or win the lottery, unfortunately you cannot keep this money yourself, but it is for the creditors.
Effort obligation and your income from work, benefits or business
If you do not have a job, you should actively seek work by registering with the Center for Work and Income and at least three employment agencies. You are required to send at least four cover letters per month. You must accept any job offer. You must also accept part-time work because this increases your chances for a full-time job. If you work part-time and can work full-time or if you earn less than you could, you should apply for a better job.
In principle it is not allowed to follow a full-time course or to continue as an entrepreneur. You must be fully available to the job market and make every effort to save as much money as possible for your creditors during the WSNP. This does not apply only if it has been officially established that you are completely incapacitated for work.
Your employer or benefits agency is usually informed by the administrator of the scheme and requested to transfer part of your salary or benefit to the estate account from now on. You can choose to transfer your compulsory contribution each month. After the scheme has ended, the money, after deduction of costs, will be distributed to your creditors, or it will be used for an agreement before.
You must immediately notify the administrator of any changes in your personal situation (for example, other work, moving house, getting married, children, etc.). You must follow the directions given by the administrator. For example, you must also keep him informed, even without being asked, about your applications, for example.
During the WSNP process, you must have a bank account that you cannot overdrawn. If you do, this will be blocked after your admission to the WSNP. It is good to take this into account and to discuss the consequences with the administrator. You are responsible for paying your fixed costs in the WSNP. No new debts may arise during the settlement. If this does happen, the scheme can be terminated earlier. This leads to your bankruptcy.
Your creditors will be contacted by the administrator with the request to state your outstanding debt. You may no longer pay to your creditors during the three years of the WSNP process. Therefore, your income, household effects, etc. will also be canceled. You must of course pay bills that have arisen after you have entered the WSNP process. These accounts are not part of the WSNP process. If you do not pay your bills, this may be a reason to end your journey.
After you have been admitted, your mail will first be sent to the administrator. The postal worker sorts by name and initials, so that mail for housemates who are not in the WSNP is sent directly to them. Unfortunately this does not always go well, so that their mail is sometimes first sent to the administrator. There is nothing to do about this, except perhaps a mailbox for the housemates. The post will be opened to investigate whether it contains information for the WSNP process. The mail is then forwarded to you once a week. After 13 months, the administrator will usually end the postal blockade.
You can offer an agreement to your creditors within the WSNP process. Such an agreement means that you propose to pay a certain percentage of the claim against final discharge (link to FAQ). This is possible if you suddenly have access to a larger amount, for example by family, an employer or a credit on the basis of the Decree Assistance to the self-employed (BBZ) or via the Municipal Credit Bank. You must offer at least the same as you would have saved in 36 months. Your creditors vote on the composition at a court hearing. If they accept the agreement, the WSNP is therefore terminated earlier after payment of the agreed amount. For a successful agreement, the majority of your creditors must accept your offer. These creditors together must also represent more than half of the total debt. The rest of your creditors may then be forced to accept your offer as well.
Only in the event of a quick agreement (see the previous point) is it possible to continue with your company in the WSNP. In all other cases, the company must be terminated. Some courts do not allow you to be admitted to the WSNP with your company.
You need permission from the administrator for a holiday to and stay abroad.
Government Gazette, BKR and Central Insolvency Register
If you are admitted to the Wsnp, this will be visible in:
- The digital version of the Government Gazette
- The LRS (National Register for Debt Settlements or WSNP Register)
- The CIR (Central Insolvency Register)
This is necessary so that your creditors can check whether you have been admitted to the WSNP. Reports are also made to the Credit Registration Office (BKR) in Tiel. This remains until five years after the end of the WSNP.
More information about the WSNP can be found at Right debt of the Legal Aid Board.