Turbo liquidations enable entrepreneurs to stop their business in time if the company has no more value, for example, to sell the last inventories and use the proceeds to pay off as many debts as possible. This way, an entrepreneur can prevent debts from escalating when they can no longer be paid due to a loss of income. The alternative is often bankruptcy, where creditors recover much less of their money. The temporary law increases transparency, provides creditors with more legal protection, and combats abuse.

Entrepreneurs must actively inform creditors in writing about the cessation of the business. Additionally, entrepreneurs are required to submit financial accountability to the Chamber of Commerce during a turbo liquidation. This clarifies how the last proceeds are spent and why no more debts could be paid. There is a risk of abuse of turbo liquidations if there are still outstanding debts. Thanks to the transparency measures from the temporary law, creditors can take action against the turbo liquidation by demanding access to the administration, holding directors accountable, or having the turbo liquidation annulled by the court. Abusing a turbo liquidation is punishable under the Economic Offences Act and can lead to an administrative ban of up to 5 years.

The evaluation of the temporary law shows that it largely achieves its goals. With financial accountability, there is more transparency and a better legal position for creditors in a turbo liquidation. Therefore, the Secretary of State wants to prepare a legislative amendment that makes the temporary law permanent. The evaluation also indicated that there is a need for improvement in the enforcement of turbo liquidations. This will be included in the preparation of a permanent legislative amendment. In the meantime, the current temporary law is extended by two years so that the provisions of the current law do not lapse.