THE NATURE OF A BANKRUPTCY ORDER IN THE NETHERLANDS ANTILLES AND ARUBA
A general attachment on all assets
The nature of a bankruptcy order is to impose a general judicial attachment on all assets of the debtor for the benefit of all of its creditors. The bankruptcy has as an effect that all individual attachments and foreclosures terminate.
It should be noted that a creditor secured by a mortgage, that stipulates that the creditor may execute, as well as a creditor that is secured by pledge, may exercise their rights as if there were no bankruptcy. Pursuant to case law also creditors that have assets transferred to them in fiduciary ownership may exercise their rights as if there were no bankruptcy.
All other creditors can only exercise their rights by means of filing their claims for verification.
Karel Frielink
Attorney (lawyer) / Partner
