The number of people who ended up in debt restructuring in the Netherlands fell sharply last year. This is the lowest level since the measurements started in 1998, reports the Central Bureau of Statistics (CBS).
According to the statistical office, better economic conditions until the start of the corona crisis may have had an effect on the declining influx.
Municipalities are obliged to help
Statistics Netherlands also refers to the Municipal Debt Assistance Act, which has been in effect since 2012. Municipalities are obliged to help residents with debts and are allowed to organize the assistance themselves.
Decline
Last year, 2300 people were admitted to the debt restructuring. That is almost 700 fewer than in 2020. On December 31, 2021, 10,500 people were in debt restructuring, which is 3,400 fewer than the year before.
What is debt relief?
Debt restructuring offers people the opportunity to become debt-free when they have problematic debts. A decision for debt restructuring must be pronounced by a judge.
During a remediation, an administrator usually monitors the financial affairs of people in debt for three years. According to a strict regime, they must pay off as much of the debts as possible and no new debts may be incurred. If the debtor has complied with the agreements, a judge can decide to let the debts expire after three years.