Insolvency Law at Saba (Netherlands)
In the Caribbean Netherlands, including the island of Saba, insolvency and bankruptcy matters are governed by the Bankruptcy Decree 1931 (Faillissementswet 1931), which applies to the BES islands: Bonaire, Sint Eustatius, and Saba. This legislation provides a structured framework for addressing the financial distress of individuals and legal entities within these territories. (Bankruptcy & moratorium -Guide to doing business)
🏛️ Legal Framework
Saba is a special municipality of the Netherlands, and its legal matters, including insolvency, fall under Dutch law as applicable to the BES islands. The Joint Court of Justice of Aruba, Curaçao, Sint Maarten, and of Bonaire, Sint Eustatius, and Saba serves as the judiciary for these territories, handling both civil and criminal cases, including bankruptcy proceedings. (Saba (island), Joint Court of Justice of Aruba, Curaçao, Sint Maarten, and of Bonaire, Sint Eustatius and Saba)
🏢 Corporate Insolvency Procedures
Under the Bankruptcy Decree 1931, a debtor who has ceased to pay is declared bankrupt by court order. The Court of First Instance appoints a bankruptcy trustee (curator) responsible for administering and liquidating the debtor's assets. A supervisory judge (rechter-commissaris) oversees the process. The bankruptcy is a general attachment of practically all the assets belonging to the bankrupt estate, irrespective of their location. Creditors are prohibited from improving their position by taking recourse against assets outside the BES islands and must contribute any proceeds realized outside the BES islands to the bankrupt estate, ensuring equality among creditors. (Bankruptcy -Guide to doing business)
🧍 Individual Insolvency Procedures
Individuals facing financial distress can request a moratorium of payment (surseance van betaling), a temporary procedure intended to improve the debtor's financial situation through partial or full payment of creditors. The Court of First Instance appoints an administrator (bewindvoerder), supervised by a supervisory judge. If the payment of debts proves illusory, the moratorium can be converted into bankruptcy. (Moratorium -Guide to doing business)
⚖️ Legal Assistance and Resources
For residents of Saba, the Legal Desk Saba provides free, independent legal advice. Attorney Emmely de Haan currently offers these services, visiting the island monthly to assist with various legal matters, including insolvency issues. (News | Public Entity Saba)
🧾 Additional Considerations
Voluntary Liquidation: Legal entities may opt for voluntary liquidation (vrijwillige liquidatie), initiated by a resolution from shareholders or the court. A liquidator is appointed to manage the entity's affairs, convert assets into cash, settle debts, and distribute any remaining balance to entitled parties. (Liquidation -Guide to doing business)
Cross-Border Assets: The Bankruptcy Decree ensures that creditors cannot preferentially recover debts from assets located outside the BES islands, promoting equitable treatment of all creditors. (Bankruptcy -Guide to doing business)
RELATED Blog
0 comments