News item | 12-08-2025 | 13:05
The temporary law with measures for turbo liquidations is extended by two years. State Secretary for Legal Protection Teun Struycken writes this in a letter to the Lower House. The law contains measures for more transparency and more legal protection for creditors. The law of turbo liquidations also counteracts the law. Turbo liquidations offer entrepreneurs the opportunity to stop a company quickly and easily if this company does not contain anything of value.
Turbo liquidations make entrepreneurs possible to stop their company on time if the company does not contain anything of value, for example to sell the latest stocks and to pay as many debts as possible with this revenue. In this way, an entrepreneur can prevent debts from increasing if, for example, the loss of income can no longer be paid. The alternative is often a bankruptcy in which creditors get much less of their money. The temporary law increases transparency, offers creditors more legal protection and prevent abuse.
For example, entrepreneurs must actively inform creditors in writing about stopping the company. In addition, entrepreneurs must submit financial accountability to the Chamber of Commerce in the event of a turbo liquidation. In this way it becomes clear what the last proceeds have been spent on and why no more debts could be paid. There is a risk of abuse of turbo liquidations if there are still debts. Thanks to the transparency measures from the temporary law against turbo liquidation, creditors can take action by demanding inspection in the administration, providing directors liable or having the turbo liquidation undone by the judge. Making abuse of a turbo liquidation is punishable under the Economic Offenses Act and can lead to a prohibition of administration of a maximum of 5 years.
The evaluation of the temporary law shows that the law largely reaches its goals. With the financial accountability, there is more transparency and a better legal position for creditors with a turbo liquidation. That is why the State Secretary wants to prepare an amendment to the law that makes the temporary law permanent. The evaluation also showed that an improvement of enforcement on turbo liquidations is required. This will be included in the preparation of a permanent change in the law. In the meantime, the current temporary law will be extended by two years, so that the provisions of the current law will not expire.