Bankruptcy Act

TITLE III DEBT REPAYMENT SCHEME FOR NATURAL PERSONS

Chapter 6 Final Arrangement with the Creditors (Composition)

Article 329 Proposal of a final arrangement for payment
- 1. In respect of the claims to which the Debt Repayment Scheme applies, the debtor is entitled to offer a final arrangement for payment (composition) to the creditors of those claims.
- 2. The draft for a final arrangement (composition) with the creditors shall be deposited at the clerk's office of the District Court for public inspection free of charge. The draft may be deposited at no charge.
- 3. An offer for a final arrangement (composition) may be made also when, during the application of the Debt Repayment Scheme, an adoption of a final arrangement (composition) has been rejected earlier or its sanction (approval by the court) has been already refused. The right referred to in the preceding sentence may be exercised once.
- 4. Immediately after the draft for a final arrangement (composition) has been deposited, the magistrate ('rechter-commissaris') shall set the day, hour and place on which and where the offered arrangement shall be discussed and decided upon in front of him.
- 5. Where the day, hour and place of a to be held verification meeting have not yet been set, the magistrate ('rechter-commissaris') shall determine that day, hour and place in accordance with Article 289, paragraph 2 up to and including 5. At the verification meeting the draft for a final arrangement (composition) will be discussed and decided upon immediately after the closure of the verification.
- 6. The administrator notifies all known creditors in writing of the fact that a draft for a final arrangement (composition) has been deposited and, where relevant, of the day referred to in paragraph 5. If paragraph 5 is applicable, then the administrator shall also make an announcement (publication) without delay in the Government Gazette mentioning that a final arrangement (composition) has been deposited, and of the day referred to in that paragraph.

Article 330 Elapsing of the draft for a final arrangement
The draft for a final arrangement with the creditors (composition) shall lapse if:
a. the court does not render an order for the application of a Debt Repayment Scheme;
b. prior to the moment on which the judgment for the sanction (approval) of the final arrangement (composition) will become final and binding, a judicial order for termination of the application of the Debt Repayment Scheme has become final and binding;
c. the application of the Debt Repayment Scheme ends pursuant to the provision in Article 312, paragraph 2.

Article 331 [repealed on 01-01-2008]

Article 332 Acceptance of a final arrangement; adoption of a final arrangement by the magistrate
- 1. The debtor is entitled to clarify and defend the draft for a final arrangement with the creditors (composition) at the verification meeting and to amend it during the consultations.
- 2. Creditors of claims to which the Debt Repayment Scheme applies, may vote on the draft for a final arrangement (composition). Pledgees, mortgagees and creditors referred to in Article 299b have the right to vote if, prior to commencement of the voting, they have waived their right of summary foreclosure. Such right does not revive, irrespective of whether the final arrangement (composition) is accepted, rejected or adopted in accordance paragraph 4.
- 3. In order to be accepted, the draft for the final arrangement with the creditors (composition) must be approved by:
a. an absolute (normal) majority of all creditors present at the meeting whose claims are admitted or provisionally admitted and to which a priority ranking (right of preference) is attached, provided that their claims represent at least one-half of the total amount of their claims;
b. an absolute (normal) majority of all non-preferential creditors present at the meeting whose claims are admitted or provisionally admitted, provided that their claims represent at least one-half of the total amount of their claims.
- 4. In derogation from paragraph 3, the magistrate ('rechter-commissaris') may, upon the request of the debtor or administrator, adopt by reasoned order an offered final arrangement (composition) as if it was accepted, if:
a. three-quarters of the creditors of admitted and provisionally admitted claims who appeared at the meeting and who have claims to which a priority ranking (right of preference) is attached, and three-quarters of the non-preferential creditors voted in favour of the draft for the final arrangement (composition); and;
b. the rejection of the draft for the final arrangement (composition) is the result of votes cast against it by one or more creditors present at the meeting who, taking into account all circumstances and in particular the percentage which they probably would receive on their claims if the application of the Debt Repayment Scheme would be continued, reasonable could not have come to such voting behaviour.
- 5. The official record of the meeting shall set out the content of the final arrangement with the creditors (composition), the names of the creditors present at the meeting with a right to vote, the vote cast by each of them, the outcome of the voting and, if paragraph 4 was applied, the order of the magistrate ('rechter-commissaris').
- 6. Article 149 applies accordingly.

Article 333 [repealed on 01-01-2008]

Article 333a Final arrangement offered in cross-border insolvency situations
The statutory provisions of the present Chapter (Chapter 6) shall apply accordingly in the event that a final arrangement (composition) is offered to the creditors on the basis of Article 34, paragraph 1, of the European Regulation mentioned in Article 5, paragraph 3.

Article 334 [repealed on 01-01-2008]

Article 335 Setting a hearing before the District Court on the final arrangement
- 1. When a final arrangement (composition) has been accepted by the creditors or adopted by the magistrate ('rechter-commissaris'), the magistrate ('rechter-commissaris') shall, prior to the closing of the verification meeting, set the day and time of the court hearing where the District Court will subsequently deal with:
a. any lodged petition on the basis of Article 149;
b. the sanction (approval) of the final arrangement (composition) if such a final arrangement (composition) has been accepted or adopted.
- 2. The involved court hearing shall be held not less than eight and not more than fourteen days after the date on which the verification meeting took place. Article 151 shall apply accordingly.
- 3. Where a final arrangement (composition) has been rejected, the Dept Repayment Scheme will be continued, unless Article 350 is applicable.

Article 336 [repealed on 01-01-2008]

Article 337 Hearing at the District Court on the final arrangement
- 1. On the day of the hearing set pursuant to Article 335, paragraph 1, the magistrate ('rechter-commissaris') shall provide a written report on the matter.
- 2. Each of the creditors to whose claims the Debt Repayment Scheme applies, may, either in person or through a representative authorized by written procuration (power of attorney) or an advocate (solicitor admitted to the Bar), put forward the grounds why he supports or opposes the sanction (approval) of the scheme final arrangement (composition).;
- 3. The debtor has the right to defend his interests at the hearing

Article 338 Decision of the District Court on the final arrangement
- 1. At the date of the court hearing referred to in Article 337 or otherwise within eight days thereafter, the District Court shall give its decision.
- 2. Insofar relevant, the District Court shall firstly give a decision, by means of a reasoned court order, on petitions referred to in Article 149 and on the sanction (approval) or refusal of the final arrangement (composition) by the court. Article 153, paragraph 2 and 3, shall apply accordingly.
- 3. If the District Court refuses to sanction (approve) the final arrangement (composition), it may not declare the debtor bankrupt. In such event, the Dept Repayment Scheme will be continued, unless Article 350 is applicable.

Article 339 Application of other Articles on the decision of the District Court and appeal hearing
- 1. With regard to a decision of the District Court to refuse or to grant sanction (its approval), Articles 154, 155, paragraph 1, and 156 shall apply accordingly, on the understanding that only creditors who appeared at the court hearing referred to in Article 337 shall have a right to lodge an appeal and appeal in cassation.
- 2. Articles 137, paragraph 2 and 3 and 338, paragraph 1 shall apply accordingly to the hearing on appeal.
- 3. If the sanction (approval) of the final arrangement (composition) is nullified on appeal or on an appeal in cassation, the clerk of the involved judicial body shall notify the clerk of the District Court thereof without delay.

Article 340 Ending of the Debt Repayment Scheme when the final arrangement is sanctioned by the court
- 1. The application of a Debt Repayment Scheme shall end by operation of law as soon as the sanction (approval) by the court of the final arrangement (composition) with the creditors has become final and binding. The administrator shall announce the ending of the Debt Repayment Scheme in the Government Gazette.
- 2. A sanctioned (approved) final arrangement (composition) with the creditors shall be binding on all creditors with regard to whose claims the Debt Repayment Scheme applies, irrespective of whether or not they have submitted (presented) their claim in the Debt Repayment Scheme.
- 3. Articles 159, 160 and 162 up to and including 166 shall apply accordingly.
- 4. Where a sanctioned final arrangement (composition) afterwards gets rescinded by the District Court, the District Court may in the same judgment declare the debtor bankrupt if any assets are available from which claims may be settled in full or in part.
- 5. In a bankruptcy adjudicated in accordance with paragraph 4 no final arrangement (composition) with the creditors may be offered or proposed.

Article 341 [repealed on 01-01-2008]

Article 342 [repealed on 01-01-2008]

Article 343 [repealed on 01-01-2008]

Article 344 [repealed on 01-01-2008]

Article 345 [repealed on 01-01-2008]

Article 346 [repealed on 01-01-2008]