My professional tenant has gone bankrupt: what to do
Your professional tenant (company, self-employed) has gone bankrupt in Belgium. Impact on the commercial lease, recovery of arrears and procedure with the trustee.
Bankruptcy of the professional tenant: the situation
Dominique owns a commercial premises in Namur, rented to an SRL (limited liability company) for 4 years. The company is declared bankrupt by the enterprise court. At the time of the ruling, 3 months of rent are unpaid.
A trustee is appointed by the court to manage the company’s liquidation. It is they who decide the fate of the commercial lease.
The tenant’s bankruptcy differs from a simple arrears case: the landlord is no longer in direct contact with the tenant but with the trustee and the enterprise court.
From the publication of the bankruptcy ruling in the Belgian Official Gazette, all communication goes through the trustee. The landlord can no longer negotiate directly with the bankrupt tenant.
The trustee’s role
Continuation or termination of the lease
The trustee has 15 days after their appointment to decide:
| Decision | Consequence | Rent |
|---|---|---|
| Continuation of the lease | The lease continues, the trustee is the lessee | Estate debts (priority) |
| Termination of the lease | Lease ends, premises returned | Arrears = unsecured claims |
| Silence | The landlord serves formal notice (15-day deadline) | - |
If the trustee continues the lease
- Rent from the date of bankruptcy is an estate debt: it is paid in priority from the bankruptcy assets
- The trustee can sublet the premises or assign the lease (with the landlord’s agreement)
- If the trustee stops paying, the landlord refers to the supervisory judge
If the trustee terminates
- The landlord recovers the premises within the agreed deadline
- Pre-bankruptcy arrears are declared as a claim
- The early termination indemnity is an unsecured claim
For the rules of the commercial lease, see our guide on the commercial lease in Belgium.
Recovering arrears
Filing a claim
The landlord must file their claim with the trustee within 30 days of the publication of the bankruptcy ruling in the Belgian Official Gazette. The claim includes:
- Amount of rent arrears (with month-by-month detail)
- Early termination indemnity (if applicable)
- Damage to the premises (if found)
- Late payment interest (if provided for in the lease)
- Rental deposit — amount to deduct
Ranking of the claim
| Type of claim | Ranking | Average recovery rate |
|---|---|---|
| Estate debts (post-bankruptcy rent) | Priority | 80-100% |
| Privileged claims (mortgage, tax) | High | 40-80% |
| Unsecured claims (pre-bankruptcy arrears) | Low | 5-15% |
Pre-bankruptcy rent arrears are unsecured claims: they are paid last, after privileged creditors. The recovery rate is generally low.
The rental deposit
The rental deposit (if constituted) is not affected by the bankruptcy. The landlord can claim it to cover arrears and damage, by agreement with the trustee or by decision of the supervisory judge.
Protections for the landlord
In the commercial lease
- Require a substantial bank guarantee (3 to 6 months’ rent for a commercial lease)
- Insert a clause for automatic termination in case of bankruptcy (validity debated in case law but serves as a deterrent)
- Provide for personal surety from the manager (engages personal assets in addition to the company’s)
- Request an annual financial statement from the tenant company
During the lease
- Watch for warning signs: late payments, supplier complaints, bailiffs
- React quickly: a formal notice from the first missed payment can allow lease termination before the bankruptcy
- Use a rental management software to detect delays automatically
In case of bankruptcy
- File your claim within 30 days
- Contact the trustee immediately to learn their intentions
- Protect the premises: check that the property is not vandalised or stripped
- Consult a lawyer if the amounts at stake are significant
To create a commercial lease with appropriate protection clauses, use our online lease generator. For other situations, see our case studies.