Clean slate

Debt restructuring arrangements can end in various ways. After (usually) three years, a debtor may be granted a clean slate.

A person who can no longer pay his debts can apply to a judge for debt restructuring. Under the supervision of a receiver, the debtor pays as much as possible to his creditors, under a strict regime. All income above a certain level (95 percent of the amount of income support  for benefit claimants, 100 percent of this amount for earners) must be paid to the creditors for a period of (usually) three years.
If the debtor complies with this arrangement, he will be granted a clean slate, i.e. the outstanding debt after this period is no longer claimable.

In some cases a settlement is agreed between debtor and creditors before this three year period has ended. In other cases, the restructuring is not a success and the debtor will be declared bankrupt. All other conclusions of restructuring arrangements fall in the category ‘without consequence’.