Insolvency proceedings

The choice of the appropriate form of insolvency proceedings always depends on the entrepreneur’s intention. Third-party administration makes sense if the company’s value creation is permanently disrupted. Otherwise, it should be examined whether conducting the proceedings under debtor-in-possession management might be expedient. Our experts will examine all options together with you.

Managing directors have unlimited personal liability, particularly in the event of breaches of payment prohibitions after the company has become insolvent. Personal liability claims are also conceivable due to a breach of the “Business Judgement Rules”, which impose, in particular, documentation obligations on the management. Continuation as a going concern without personal penalties and liability risks for the management is hardly possible without professional help. Filing for insolvency at an early stage can trigger liability claims, as can filing too late. Our experts will examine all options together with you.

The primary reasons for insolvency are inability to pay and over-indebtedness. Both can be seen from proper budgeting – namely if the liquid funds are not sufficient in the short term or a medium-term continuation is no longer guaranteed. In case of any doubt, legal advice is urgently required. Our experts will support you in drawing up a valid budget and examining the grounds for filing for insolvency.

Provisional insolvency proceedings are initiated by filing a corresponding application with the insolvency court. In the case of continued business operations, filing for insolvency is always time-consuming and should be supported by a professional advisor. Both the court and a provisional insolvency administrator should be able to assess whether the business can continue as a going concern on the basis of the insolvency petition without any major investigations.

In case of a continuation as a going concern, insolvency proceedings should always be prepared with the professional support of an insolvency lawyer. A suitable insolvency administrator can be proposed to the insolvency court for this purpose.

Once insolvency proceedings have been opened and an insolvency administrator has been appointed, the administrator immediately takes over the administration of the entire insolvency estate. He is responsible for a whole range of tasks, such as filing, sealing, recording, storage and accounting obligations.

Timely preparation is particularly important in the case of a debtor-in-possession insolvency. The honesty of the persons involved also plays a major role. Our experts will examine all options together with you.

A comprehensive analysis is required to answer this complex question. Our experts will examine all options together with you.

Yes, in most cases this is true.

Yes, this is certainly possible and may be one of the main advantages of insolvency proceedings. Our experts will examine all options together with you.

Yes, this is certainly possible and depends above all on the joint liability of the other group divisions. Our experts will examine all options together with you.

Insolvency courts publish all insolvency announcements on the internet portal www.insolvenzbekanntmachungen.de. Such portal also shows the respective competent courts and insolvency administrators. In order to find out which insolvency administrator is responsible, you can use a simple search function on the website.

In Germany, the Insolvency Code (InsO) regulates the handling of insolvencies. The Insolvency Code’s overarching goal is to “jointly and equally satisfy” the creditors of an insolvent company.