Managing unpaid invoices is a challenging aspect of financial management, especially when your debtors are involved with the Debt Restructuring for Natural Persons Act (Wsnp). This process, intended to help individuals with problematic debts, can significantly complicate the collection of outstanding payments. For entrepreneurs and creditors, it is therefore essential to understand what the Wsnp entails and what steps you can take to collect outstanding invoices, even if your debtor is in a debt restructuring process.
What is Wsnp?
The Debt Restructuring for Natural Persons Act, or Wsnp, is a legal arrangement in the Netherlands designed to offer individuals with problematic debts a chance for a debt-free future. This process is initiated when an amicable settlement does not have the desired effect. The Wsnp is carried out under the supervision of a supervisory judge and a debt administrator, who together with the debtor, establish a restructuring plan to alleviate the debt burden.
When a debtor enters the Wsnp, creditors face various restrictions. For example, no new seizures can be executed, and existing collection procedures are halted. However, this does not mean that your unpaid invoices are automatically written off. You still retain your rights as a creditor, but the process of collecting the claim becomes significantly more complex and is subject to strict rules and conditions.
What can you do about unpaid invoices?
Collecting unpaid invoices can be challenging, especially if the debtor is in a debt restructuring process. However, there are steps you can take to maximize your chances of payment.
First of all, it is important to take timely action. As soon as you notice that an invoice remains unpaid, it is wise to contact your debtor directly. You can try to reach a payment arrangement together.
Another option is to submit the claim to the debt administrator. They determine in consultation with the supervisory judge whether and how your claim is included in the restructuring plan. However, keep in mind that not all creditors are fully paid. Often, creditors only receive part of their claim back. It is also important to keep an eye on the limitation period of the claim, so you do not lose rights due to prolonged inactivity.
Tips to prevent unpaid invoices
While there are actions you can take when dealing with debtors in the Wsnp, it is advisable to act accurately. The following tips can help you prevent problematic payments:
1. Assess the financial health of your customers
Before agreeing to a sale on account, it is important to assess the financial health of your customer. You can do this by conducting credit checks and determining your customer’s credit limit. Customers with good creditworthiness are less likely to default on their payment obligations, reducing the risk of unpaid invoices.
2. Set clear contract terms
Ensure that your contract terms are clear, especially regarding payments. Clearly state the payment terms and any interest on overdue payments. This helps to prevent misunderstandings and makes it easier to take action when payments are delayed.
3. Implement an effective collection process
A well-organized collection process can help to receive payments on time. This may mean sending standard payment reminders and warnings, and taking legal action if necessary. Automation can play a valuable role in this.
Assistance with Wsnp from Payt
Managing debtors and dealing with unpaid invoices can be a time-consuming and complex task, especially when dealing with the Wsnp. At Payt, we offer you a comprehensive solution to automate your debtor management, allowing you to work more efficiently and effectively.
With Payt, you can automatically send invoices and reminders, making your customers more likely to pay on time. Additionally, you gain insight into the status of your outstanding claims, so you are always aware of which invoices are still open and which customers are in a debt restructuring process. This enables you to respond quickly and appropriately when a customer fails to meet payment obligations.
In short, Payt not only helps you optimize your debtor management but also provides the necessary tools to effectively deal with the challenges posed by the Wsnp and unpaid invoices. Want to know more about the possibilities? Feel free to contact us.
Frequently Asked Questions
What does the Wsnp entail?
The Debt Restructuring for Natural Persons Act (Wsnp) is a legal arrangement in the Netherlands that helps individuals with problematic debts to become debt-free. It is implemented when an amicable settlement fails and involves a debt administrator and supervisory judge overseeing the debt restructuring process.
What can I do if a customer does not pay due to the Wsnp?
You can submit your claim to the debt administrator. Additionally, it is important to consider legal steps, such as applying for a forced connection, to safeguard your rights as a creditor.
How can Payt assist with debtor management?
Payt automates the entire debtor management process, from sending invoices to collecting overdue payments. This ensures more efficient management of your unpaid invoices, even if your debtor is in a Wsnp process.