The Judicial Reorganisation Procedure (JRP)

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

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

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 is why the Brussels-Capital Region, via Beci, is helping you to finance 75% of the costs of a JRP (with a maximum of €4,840 including VAT). This means you can request payment extensions for all your debts. Take advantage of these support measures 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 manner. Under a JRP, the 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 respite, the company puts in place a recovery plan, which must be approved by the creditors and the court, and which will enable it to clear its debts. Translated with DeepL.com (free version)

4 types of JRP

JRP by collective agreement:

During this PRJ, a grace period of between 1 and 4 months is put in place in order to draw up a plan. This plan is submitted to all creditors. To be validated, it must be approved by a double majority – in terms of amount and number – of the creditors. The plan is then binding on all parties, including the ONSS and the VAT authority.

JRP by amicable agreement:

This aims to reach an amicable agreement with the creditors of the company's choice on a payment schedule and the negotiation of the waiver of part of the debt.

Transfer JRP:

Prior to the law of 1 September 2023, the purpose of this PRJ was to transfer the viable division of a company. After the law of 1 September 2023, it was renamed ‘transfer under judicial authority’, leaving the PRJ category and moving into that of liquidation procedures, in response to criticism levelled in particular by the Court of Justice of the European Union in its Plessers judgment of 16 May 2019, which would take too long to go into here. The transfer is considered an independent insolvency procedure whose ultimate objective is the liquidation of the debtor's assets. At the end of the procedure (i.e. once the transfer has taken place), the fate of the company is sealed: it must necessarily be declared bankrupt or in liquidation. It should be noted that this type of PRJ, even after the law of 1 September 2023, was accepted for financing, but it represents less than 5% of accepted cases.

JRP silent/private:

A confidential procedure that is becoming increasingly popular. If negotiations are successful, the company can then request the official opening of a ‘traditional’ PRJ with publication, giving it time to prepare a plan or negotiate with certain creditors. If nothing comes of it, the attempt remains confidential, which prevents the company from being stigmatised. Objective: To give a second chance to companies in difficulty, protecting their reputation and giving them time to reach an amicable agreement with their main creditors before any official publicity.

You wish to apply for assistance with the costs of 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.

Introduire votre requête (FR)

Submit your request (EN)

Who can apply for a JRP

Companies, NPOs and natural persons.

Difference between PRJ, debt mediation and bankruptcy

Both procedures are equally valid; they are simply more suited to certain cases than others. To find out whether you should opt for mediation or a PRJ, refer to the table below.

What to choose: PRJ 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 financial assistance available for 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 are the other conditions for eligibility?

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 PRJ and mediation, what other ways are there to reduce your debt?

Borrowing, but this is not ideal when you already have debts.
Recapitalising, for example through family or friends.
Selling assets.

Are you a chartered accountant or solicitor?

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
Private or silent judicial reorganisation procedure

Contact our JRP advisor

Eric Vanden Bemden

Entrepreneurship Community Manager

02 533 40 90

La PRJ : Procédure de Réorganisation Judiciaire

	JRP	Mediation	Bankruptcy
Choice of languages	FR/NL	7 languages	Depending on the address of the registered office
Can you choose which creditors to negotiate with?	No, they are all called, but the creditor can choose whether or not to attend.	Yes, you can choose the creditors with whom you wish to find a solution.	The trustee is responsible for repaying the creditors, in order of importance according to the company's assets and liquid assets.
Can the amount of debt be reduced?	YES. Please note that it is difficult to reduce the amount of debt owed to financial institutions and the authorities.	YES	YES
Applicant's financial situation	Complex situation (many creditors and large amount of debt)	Relatively simple situation (few creditors and low debts).	The company can no longer find solutions because its debts are too high in relation to its profitability.
Submitting the claim to creditors	All creditors are contacted. A double majority is required to reach an agreement.	The company chooses which creditors are contacted.	A creditor may file for bankruptcy against either the manager or the administrator. All creditors must come forward.
Is it confidential?	NO	YES	No, publication in the Belgian Official Journal
How is the payment plan accepted?	Double majority required: 1. in number of persons (e.g. if there are 5 creditors, the agreement of 3 of them is required). 2. In terms of the amount owed (e.g. if the total debt is €20,000, the agreement must cover a minimum of €10,001).	Agreement drawn up separately with each creditor and validated by the court if desired	/
Period	Very short introduction times. The company must react in time. Settlement within 5 years maximum	Unlimited, as long as debtors agree to negotiate	Immediate, as soon as you are cited
Cost	1,000 EUR EXCL. VAT	500 EUR EXCL. VAT	/

They also talked about JRP

FEB/VBO - Federation of Belgian Enterprises

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The Judicial Reorganisation Procedure (JRP)

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

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

4 types of JRP

You wish to apply for assistance with the costs of a JRP:

Who can apply for a JRP

Difference between PRJ, debt mediation and bankruptcy

What to choose: PRJ or mediation?

Is there any financial assistance available for these procedures?

What are the other conditions for eligibility?

Apart from PRJ and mediation, what other ways are there to reduce your debt?

Are you a chartered accountant or solicitor?

Contact our JRP advisor

They also talked about JRP

FEB/VBO - Federation of Belgian Enterprises

Koen Geens

Trends Tendances

Federal Public Service - Justice

Company restructuring

1819

BECI

Florian Ernotte

RTBF

Media

Barbara Trachte and Paul Dhaeyer

BX1

Follow us

The Judicial Reorganisation Procedure (JRP)

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

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

4 types of JRP

You wish to apply for assistance with the costs of a JRP:

Who can apply for a JRP

Difference between PRJ, debt mediation and bankruptcy

What to choose: PRJ or mediation?​

Is there any financial assistance available for these procedures?​

What are the other conditions for eligibility? ​

Apart from PRJ and mediation, what other ways are there to reduce your debt?

Are you a chartered accountant or solicitor?

Contact our JRP advisor

They also talked about JRP

FEB/VBO - Federation of Belgian Enterprises

Koen Geens

Trends Tendances

Federal Public Service - Justice

Company restructuring

1819

BECI

Florian Ernotte

RTBF

Media

Barbara Trachte and Paul Dhaeyer

BX1

What to choose: PRJ or mediation?

Is there any financial assistance available for these procedures?

What are the other conditions for eligibility?