Restructuring & Insolvency
Discover what restructuring & insolvency means in legal practice: how lawyers guide financially distressed companies, insolvency practitioners and creditors, what they do day to day, the career ladder, and how students prepare for an internship or traineeship.
Introduction
What is restructuring & insolvency?
Restructuring & insolvency is the practice area centred on companies in financial distress: from restructuring outside formal insolvency to formal bankruptcy. It combines civil law, corporate law and procedural law in matters where speed and certainty are often decisive.
Since the introduction of the Dutch Act on Court Confirmation of Private Restructuring Plans (WHOA), companies can also reach a binding agreement with creditors outside formal insolvency. Formal bankruptcy law also remains relevant, with a central role for the insolvency practitioner who administers the bankrupt estate.
Lawyers in this field often work with other practice groups: a restructuring often touches employment law because of staff, banking & finance because of security interests, and dispute resolution once a conflict escalates.
The practice
Three settings where you practise this field
The breakdown below mainly says something about the type of matter and the client you serve, not about the quality of the work.
At international firms you often work on large, cross-border restructurings. At Dutch full-service firms, the insolvency practice often sits close to corporate/M&A and banking & finance. Boutique firms specialise fully in insolvency law and often serve as insolvency practitioners themselves.
What they do
What restructuring & insolvency lawyers do
The work differs by matter, but the building blocks below come up in almost every insolvency matter.
Legal framework
The key legislation
Restructuring & insolvency revolves around a set of core statutes that keep recurring, even though application differs greatly between restructuring and formal bankruptcy.
Practice areas
The main sub-areas
Restructuring & insolvency is broad, and most lawyers specialise within one of the sub-areas below.
Step by step
How a WHOA process unfolds
Most WHOA processes follow a similar path, from preparing the plan to court confirmation. For more complex debt structures, negotiating with creditors can take considerable time.
Who does which step depends on seniority. Junior lawyers work out the plan and the underlying figures in detail, while senior lawyers lead negotiations with creditors and the court.
Not every plan is confirmed: the court tests whether creditors are sufficiently protected, and can refuse confirmation if the statutory requirements are not met.
Roles
Roles in the restructuring & insolvency practice
Each step up the ladder shifts the emphasis further from building the file toward setting restructuring strategy and acting as insolvency practitioner. Most lawyers climb this ladder at the same firm, though moving between firms at any level is common.
Student intern
Supports lawyers during an internship alongside or after studies.
Trainee lawyer
The mandatory three-year traineeship straight after graduating.
Lawyer / Associate
Handles matters independently after being admitted to the bar, sometimes as insolvency practitioner in smaller bankruptcies.
Senior Associate
Leads more complex restructurings and mentors junior lawyers.
Partner
Holds ultimate responsibility for clients and the practice group, often insolvency practitioner in larger bankruptcies.
Career timeline
How long each step takes
The legal profession has a fixed statutory basis for the first step: a traineeship in the Netherlands generally lasts three years and is mandatory for every starting lawyer, regardless of practice area. After that, the pace of progression depends heavily on the firm and on individual performance.
After the traineeship, the emphasis shifts from building files to independently leading restructurings and acting as insolvency practitioner. Making partner takes more than ten years of legal experience at most firms.
Not everyone climbs the whole ladder at the same firm. Some lawyers move into a role at a bank or distressed-asset investor, bringing their experience with them.
| Level | Typical time in role |
|---|---|
| Advocaat-stagiair | 3 years, mandatory by law |
| Advocaat / Associate | 3 to 5 years |
| Senior Associate | 2 to 4 years |
| Partner | top level, 10+ years in total |
Compensation
Compensation in the legal profession
Compensation in the legal profession usually consists of a fixed salary that rises with seniority, and at some firms a variable bonus tied to individual and firm performance. Restructuring & insolvency does not differ materially in pay structure from other practice areas at the same firm.
The ranges below are general indications for larger Dutch and international firms, and do not apply specifically to this practice area or to any particular firm. Actual pay varies by firm, region and role, and is listed where known in the individual vacancies on this site.
From partner level, the nature of compensation changes. A partner typically shares in the firm's profits rather than receiving a fixed salary, which ties pay more closely to their own client portfolio and the results of the practice group as a whole.
| Level | Indicative range |
|---|---|
| Advocaat-stagiair | €60.000 – €75.000 |
| Advocaat / Associate | €75.000 – €110.000 |
| Senior Associate | €120.000 – €160.000 |
| Partner | €200.000 – €500.000+ |
Ranges are general indications for the Dutch legal profession, not specific to this practice area or a particular firm. See the vacancy pages for concrete salary figures where a firm publishes them.
A day in the life
A typical day for a junior lawyer
The day often starts with reviewing the financial figures of a distressed company or preparing a draft plan. On days without a hearing, much of the time goes into drafting restructuring documents and assessing creditor positions.
A restructuring & insolvency lawyer often works under significant time pressure: a company facing liquidity problems often has only days or weeks before bankruptcy becomes unavoidable. That requires moving quickly between client, creditors and court.
On a day with a confirmation hearing, the pace shifts entirely. The lawyer prepares the pleading, anticipates objections from creditors, and supports the client during the hearing.
Juniors
What trainee lawyers do
Junior lawyers carry much of the research and drafting work a restructuring or bankruptcy rests on, under the supervision of a supervising partner.
- Reviewing financial figures
- Drafting draft plans
- Case law and literature research
- Mapping creditor positions
- Drafting draft advice
- Tracking procedural deadlines
- Sitting in on hearings
- Correspondence with the insolvency practitioner
Much of this work goes back and forth several times between trainee and supervisor before a plan or submission is filed. That repetition is not inefficiency, it is how a junior lawyer learns which risks in an insolvency matter really matter.
Skills
Skills you will need
Legal knowledge gets the most attention in training, but the lawyers who stay longest often stand out through speed: being able to find a legally sound solution under significant time pressure.
Getting in
How you get into restructuring & insolvency
Most routes run through a law master's with a specialisation in corporate law or private law, followed by an internship or traineeship at a firm. An affinity with finance and thinking on your feet is a plus.
Preparation
How to prepare as a student
Preparation works best when it starts well before the application. Firms test not only legal knowledge, but also whether someone can think clearly under time pressure.
Compare
Restructuring & Insolvency versus other practice areas
These practice areas often overlap in the same matters, which is why students sometimes mix them up. The distinction mainly lies in who the counterparty is and which part of the matter is at the centre.
Restructuring & Insolvency vs Dispute Resolution
Dispute Resolution conducts the broader procedural law for all kinds of disputes. Restructuring & Insolvency applies that procedural law specifically to disputes around bankruptcy and restructuring.
Restructuring & Insolvency vs Corporate/M&A
Corporate/M&A guides a healthy acquisition. Restructuring & Insolvency guides the acquisition or wind-down of a distressed company.
Restructuring & Insolvency vs Employment, Labour & Pensions
Employment covers the employment relationship itself. Restructuring & Insolvency covers what happens to employment contracts in a bankruptcy or restructuring.
Restructuring & Insolvency vs Banking & Finance
Banking & Finance structures financing and security interests upfront. Restructuring & Insolvency handles what happens to those security interests once the company runs into trouble.
Restructuring & Insolvency vs Tax
Tax structures the tax consequences of a restructuring or bankruptcy. Restructuring & Insolvency structures the process itself.
Employers
Firms with a restructuring & insolvency practice in the Netherlands
We only name firms here whose specific restructuring & insolvency practice has been verified. At this time, we have been able to confirm one firm.
International firms
DLA PiperWe are working on verifying more firms with a specific restructuring & insolvency practice in the Netherlands. In the meantime, browse all employers or all open vacancies.
Browse all employersVacancies
Restructuring & Insolvency vacancies
We only show real, current openings with a link to the employer. Internships, traineeships and lawyer roles appear here. In the meantime, browse all current vacancies.
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Recommended resources
FAQ
Frequently asked questions
What is restructuring & insolvency?
Restructuring & insolvency is the practice area centred on companies in financial distress, from restructuring outside formal insolvency to formal bankruptcy law.
What is the WHOA?
The Act on Court Confirmation of Private Restructuring Plans (WHOA) allows a company to reach a binding agreement with creditors outside formal insolvency, provided the court confirms the plan.
What does an insolvency practitioner do?
An insolvency practitioner is appointed by the court to manage and wind down the bankrupt estate, aiming to serve the joint interests of creditors.
What does a restructuring & insolvency lawyer do day to day?
These lawyers draft restructuring plans, assist insolvency practitioners and creditors, guide suspensions of payment, and assess director liability and security positions.
What is the difference between a suspension of payments and bankruptcy?
A suspension of payments is a temporary deferral of payment obligations under which the company continues to exist under the supervision of an administrator. Bankruptcy ends the company and is wound down by an insolvency practitioner.
When is a director personally liable in a bankruptcy?
A director can be personally liable for manifestly improper management that is a significant cause of the bankruptcy, as set out in Book 2 of the Dutch Civil Code.
What skills do you need for restructuring & insolvency?
Analytical thinking, precise writing, financial acumen, attention to detail, and the ability to work under significant time pressure.
How do I get into this field as a student?
Take electives in insolvency law and corporate law, do an internship at a firm with an insolvency practice, and apply to structured traineeships that offer a rotation in this field.
Related
Related legal paths
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