How to Fund Assetless Estates in Insolvency? Assessing European Funding Mechanisms

G. van Dijck

Research output: Contribution to journalArticleScientificpeer-review


Insolvency law faces the challenge of properly liquidating insolvent estates. To achieve this, insolvency representatives need to be skilled, and paid. Countries have adopted differ- ent models for compensating insolvency representatives who liquidate estates. While a proper insolvency funding mechanism is important, the topic has received little scholarly attention, particularly with respect to the effects, benefits, and dangers of funding mechanisms in insolvency. This paper explores several mechanisms and distinguishes several models: insolvency estate funding, state funding, third party funding, not opening an in- solvency procedure at all. Using evidence from the U.K., Germany, and the Netherlands, this paper (1) demonstrates the dangers of insolvency estate funding, (2) explores whether state funding models, not opening an insolvency procedure or third party funding models can resolve the issues related to insolvency estate funding, and (3) discusses the limitations of the models. The results raise several questions as to what is the best way to liquidate estates.
Original languageEnglish
Pages (from-to)135-148
Number of pages14
JournalEuropean Company and Financial Law Review
Issue number2
Publication statusPublished - 2014


  • Bankruptcy Law
  • Insolvency Law
  • Funding
  • Assetless Estates
  • Empirical
  • Third Party Funding
  • State Funding


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