Abuse of bankruptcy law
The right must be used for the purpose for which it was written. The purpose of bankruptcy law is to prevent people or companies from continuing to accrue debt that they cannot pay off.
Bankruptcy law is often used by a franchisor as a means of pressure to induce the franchisee to pay promptly. If payment is not made on time, the franchisor immediately threatens to file for the bankruptcy of the franchisee. No room is left for a possible counterclaim or to contest the claim.
In short, the bankruptcy law indicates that bankruptcy can be declared when there are several creditors and the debtor is in a state in which he has ceased to pay. The requirement that there must be more than one creditor will often be met when a franchisor claims to have a claim against a franchisee. As a creditor, for example, the current account credit already counts. However, the fact that there are several creditors is not a sufficient condition to be declared bankrupt. In addition, there must also be a situation in which payment has ceased.
When a franchisee leaves an invoice unpaid and the franchisee has a reason for this, it is therefore advisable to properly communicate and record the reason for non-payment. If the franchisee does not pay for a reason, he is not in the situation that he has ceased to pay, so the reason must be known. In this way, the franchisee avoids being wrongly put under pressure to file for bankruptcy or, more annoyingly, that, after the franchisor has already filed for bankruptcy, the situation has to be explained to the court, where there is actually a discussion about the amount of the invoice or the quality of the service or goods provided.
Ludwig & Van Dam franchise attorneys, franchise legal advice
![](https://ludwigvandam.megaconcept.nl/wp-content/uploads/2020/12/232court-min-400x222.jpg)
Other messages
Success Albert Heijn franchisee against takeover Deen – mr. AW Dolphijn – dated July 29, 2021
An Albert Heijn franchisee has successfully defended itself against the ...
Article Franchise+: “Only with proof of transferred know-how can a non-compete appeal be invoked” – mr. T. Meijer – dated July 26, 2021
On July 16, 2021, the preliminary relief judge of the ...
Judge: “franchisee to move in standstill period” – mr. RCWL Albers – dated July 1, 2021
In recent proceedings before the preliminary relief judge in Utrecht, ...
Article Franchise+: “5 tips for starting franchisees” – mr. RCWL Albers – dated June 30, 2021
Choosing a franchise can be attractive for you as a ...
Supermarket Newsletter – No. 31 –
The Supreme Court still ruled in favor of Albert Heijn ...
Article De Nationale Franchisegids: The consequences of providing an incorrect (turnover and profit) forecast by the franchisor – mr. K. Bastiaans – dated June 9, 2021
In many cases, prior to entering into a franchise agreement, ...