Last year, the number of debt management plans (DMPs) imposed by Dutch courts has grown by more than a quarter relative to 2009. The number of DMPs increased markedly in the fourth quarter of 2010. The increase recorded since mid-2009 thus continues.
DMPs imposed by Dutch courts
More private persons
More than 11 thousand debt management plans were imposed by Dutch courts in 2010, i.e. nearly 2.5 thousand more than in 2009. The number of private persons eligible for debt management plans soared in 2010. In the fourth quarter, it increased by more than half compared to one year previously.
The increase among (ex-)entrepreneurs levelled off during 2010. The number of DMPs involving (ex-)entrepreneurs has increased since mid-2009 and reached a record high in the last quarter of 2009. This category usually responds quicker to economic developments than private persons.
Flevoland: 5 times as many DMPs as Utrecht
On average, 87 per 100 thousand residents across the Netherlands in the age category 18 years and older were involved in debt restructuring proceedings. Friesland was the only province where the number of DMPs dropped marginally last year compared to 2009.
There are huge differences between the Dutch provinces. In Utrecht, the average number of DMPs per 100 thousand residents was 49 in 2010 versus 251 in Flevoland. Proportionally, Flevoland also topped the list in 2009.
Relative number of court-imposed DMPs
Growing part free of debt afterwards
In total, 13 thousand debt management plans were terminated in 2010. In 81 percent of cases, the debtor had a so-called clean slate, i.e. the remainder of the debt is cancelled.
The percentage of DMPs ending in a clean slate has risen continually since 2005. Just like in previous years,
(ex-)entrepreneurs slightly more often ended with a clean slate in 2010 than private persons.
DMPs by manner of termination
Kees van den Berg and Vinodh Lalta