Cooling-off period

A debtor can apply to the court to declare a cooling-off period under the WHOA. During the cooling-off period, which applies for up to four months (with an option to extend by another four months) (i) creditors who have been informed about the cooling-off period or the preparation of the WHOA composition cannot take any remedial action, (ii) the court can lift attachments and (iii) the processing of a petition for a payment moratorium or bankruptcy is suspended. See Article 376 of the Faillissementswet (Bankruptcy Act).

The court can also declare a cooling-off period in a payment moratorium. See Article 241a of the Faillissementswet (Bankruptcy Act). In bankruptcy, both the supervisory judge and the judge declaring the bankruptcy can declare a cooling-off period. See Article 63a of the Faillissementswet (Bankruptcy Act). The cooling-off period in a payment moratorium or bankruptcy will last a maximum of two months, with an option to extend by another two months.