Faillissementspauliana

The bankruptcy pauliana is a specific remedy under Dutch insolvency law, provided for in the Bankruptcy Act. It empowers the trustee to avoid transactions entered into by the bankrupt debtor with the intention of prejudicing creditors or that objectively have a prejudicial effect.

This mechanism serves to safeguard the estate against asset transfers that impair creditors’ rights of recourse. Without it, debtors could divert assets shortly before bankruptcy, thereby undermining the equal treatment of creditors.

In practice, the bankruptcy pauliana is invoked primarily in respect of suspicious transactions with affiliated parties or sales of assets below market value, provided the trustee can demonstrate that the counterparty knew or ought to have known of the prejudice.