Vol 23 (2026) - Issue 3

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Bankruptcy on a Budget: The Dutch Approach to Empty Estate Insolvencies

Synopsis
Empty estate insolvencies, where a debtor’s estate lacks sufficient assets to cover administration costs, are a substantial part of Dutch bankruptcy practice. Around one quarter of Dutch bankruptcies involve underfunded estates, leading to unpaid trustee remuneration and limited investigative activity. This article outlines the Dutch legal framework governing such cases, examines the practical difficulties they create for trustees, and draws on recent empirical findings to illustrate the structural nature of the problem. It concludes with several observations on how empty estate insolvencies might be addressed to safeguard procedural integrity and creditor protection.