Insolvency Proceedings: Process and Phases
The insolvency procedure offers insolvent companies and private individuals an opportunity to regulate debts and reposition themselves. Both entrepreneurs and creditors can file for insolvency in order to create a legal basis for liquidation or restructuring.
course of insolvency proceedings
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Application: The insolvency application is filed either by the debtor himself or by creditors with the competent local court.
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Examination by the insolvency court: It is examined whether there is sufficient insolvency estate to cover the costs of the proceedings.
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Opening of proceedings: If insolvency proceedings are opened, the court appoints an insolvency administrator who takes over the debtor's affairs.
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Debt settlement: Creditors file their claims and the insolvency administrator takes care of the distribution of the insolvency estate.
Opportunities through self-administration and protective shield proceedings
Companies have the option of retaining management and actively participating in the restructuring through self-administration proceedings or a protective shield procedure . These procedures make it possible to retain control over the company and to restructure it independently.
Personal Bankruptcy: Path to Debt Freedom
For private individuals, the consumer insolvency procedure offers a regulated opportunity to reduce their debts within a set period of three years. After the procedure has been successfully completed, the remaining debt can be discharged.
Conclusion: Bankruptcy as a new beginning
An insolvency procedure is not the end, but can be seen as an opportunity for a new financial start. Whether you are an entrepreneur or a private individual, you can find your way out of the debt trap by taking action early and getting support.
The Debtor-Insolvency Center eV in Leinfelden-Echterdingen accompanies you through the entire process and is at your side as a strong partner.
MORE information and details can be found on our detailed page HERE
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