The Judicial Reorganisation Procedure (JRP): what is it?

Do you have business debts (VAT, social security contributions, rent, tax, banks, suppliers, bailiffs, etc.) that you can no longer repay? How can you avoid bankruptcy? Do you want to reduce your debts? Do you want to help your business in difficulty?

As reported by RTBF, ‘20% of companies that were healthy before the pandemic are now in serious financial difficulty’ (1), and this figure is likely to rise in the coming months.

That's why the Brussels-Capital Region, through BECI, is helping you to finance 75% of the administrative costs of a JRP (up to a maximum of €5,333.33 including VAT). As a result, you will be able to apply for deferred payment on all your debts. Take advantage of these support mechanisms to avoid bankruptcy, such as the JRP (judicial reorganisation procedure) or debt mediation.

Avoid bankruptcy by introducing a JRP? What is the purpose of a JRP?

Its purpose is to find a solution to financial problems.

How? By negotiating an agreement to reduce the company's debts, but in a much stricter and more formal way. Under a JRP, a company in difficulty asks the court for a period of time to get back on its feet, during which its creditors will leave it alone. During this period, the company puts in place a recovery plan, which must be approved by the creditors and the court, and which will enable it to pay off its debts.

3 types of JRP

JRP by collective agreement: during this JRP, a standstill period of between 1 and 4 months is put in place to draw up a plan. The plan is submitted to all creditors. To be validated, it must be approved by a double majority - in terms of amount and number - of creditors. The plan is then binding on everyone, including the NSSO and the VAT authority.

JRP by amicable agreement: the aim is to reach an amicable agreement with the creditors of one's choice on the staggering of payments and the negotiation of the waiver of part of the debt.

JRP by transfer: before the law of 1 September 2023, the purpose of this JRP was to transfer the viable department of a company. After the law of 1 September 2023, it was renamed ‘transfer under judicial supervision’, leaving the category of JRPs and falling into that of liquidation proceedings, in response to the criticisms made by the Court of Justice of the European Union in its Plessers judgment of 16 May 2019, to which it would take too long to elaborate here. The transfer is considered to be an independent insolvency procedure whose final objective is the liquidation of the debtor's assets. At the end of the procedure (i.e. once the transfer has taken place), the company's fate is definitively sealed: it will necessarily have to be declared bankrupt or liquidated. It should be noted that this type of JRP was accepted for financing even after the law of 1 September 2023, but represents less than 5% of the cases accepted.

You wish to apply for intervention of the handling fee for a JRP:

This form can be completed by the entrepreneur concerned or by the chartered accountant or lawyer who wishes to submit an application on behalf of his client.

Who can apply for a JRP?

Les entreprises, les ASBL et les personnes physiques. 

Difference between JRP, Debt mediation and Bankruptcy

Both procedures are equally valid; they are simply better suited to some cases than others. To find out whether you should opt for mediation or a JRP, use the table below.

JRP or mediation?

To help you, we have put in place a short questionnaire which will only take a few minutes to complete, and which will help you to see things more clearly.

Is there any aid available to finance these procedures?

Yes, the Brussels Region, via BECI, will help you finance this aid up to 75% (with a maximum of €5,333.33 including VAT). To benefit from the Region's aid, the company must, among other things, prove that it was viable on 31 December 2019.

What other conditions apply?

• Conducting business in Brussels,
• Being the manager with decision-making,
• No more than 3 bankruptcies in the last 5 years,
• No convictions in the preceding 5 years,
• Having positive equity

Apart from JRP and mediation, what other ways are there of reducing debt?

1. Borrowing, but that's not ideal when you're already in debt

2. Recapitulate, via family or friends for example

3. Disposing of assets

Are you a chartered accountant or lawyer?

You can submit a service request for your customer using this form.

You may submit an application to intervene in the costs of the judicial reorganisation procedure for your client for the following JRPs, for which you will be asked to provide an attestation :

• Judicial reorganisation procedure by collective agreement
• Judicial reorganisation procedure by amicable judicial settlement (prepack)
• Judicial reorganisation procedure by transfer under judicial supervision 

Contact Eric Vanden Bemden, our JRP advisor

 by videoconference by taking an appointment here 

via our call-center on 02 533 40 90

or  by mail 

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