company insolvency
Corporate insolvency at a glance - what should be considered in 2025?
table of contents
A company insolvency is a process in which a company can no longer pay its debts and therefore becomes insolvent. Especially in times of recession, inflation and problems with supply chains , the risks of insolvency for companies increase .
There are different types of insolvency proceedings that can be applied depending on the type and size of the company. Basically, there are three types of insolvency proceedings: regular insolvency , simplified insolvency and self-administration .
Many companies are threatened by insolvency sooner or later
If liabilities arise that are too large to be serviced with income , insolvency will occur. If outstanding liabilities cannot be paid off for more than three weeks , the company will inevitably become insolvent.
- Another reason for filing for insolvency is the company's over-indebtedness : the debts exceed the company's assets and are no longer covered.
- There are different types of insolvency proceedings for companies that can be applied depending on the type and size of the company. Basically, there are three types of insolvency proceedings (explained in more detail in the company insolvency FAQ ):
- standard insolvency
- Simplified insolvency
- self-administration
An insolvency procedure must not only take creditors into account
Maintaining the company through restructuring (reorganization or reorganization) and thus financial recovery should also be a focus. In addition, risks with painful consequences, such as " rejection of insolvency due to lack of assets " , can be avoided through advice and sufficient knowledge in advance. My team of experts and I , one of Germany's most successful certified debt and insolvency consultants as well as business and asset protection consultants, are available to help you continue your company and obtain business approval before and during insolvency proceedings.
Before filing for company insolvency, you should seek advice from a specialist insolvency lawyer or debt counselor with sufficient expertise . There are many unnecessary financially painful mistakes that can be avoided with specialist knowledge.
Insolvency for Companies & Businesses
Too high demands on your own share, demands from the tax office, economic crises & inflation, supply chain problems …?
There are many reasons why a company may find itself in financial distress.
Your advantages with our advice:
- We will inform you about the possibility of company insolvency .
- We support you in filing for insolvency .
- And quickly: We can usually organize the insolvency online and by phone within one day .
- We will send you all the important documents and help you to understand and fill them out .
- The speed of processing depends, among other things, on the legal form of your company . Therefore, please provide all information in the consultation form at the bottom of the page.
- Start your journey out of the red today .
Insolvency for Self-Employed Entrepreneurs
When can self-employed people file for bankruptcy?
As a self-employed person (entrepreneur), you are only allowed to consider bankruptcy under certain circumstances . In this case, there must be a realistic assessment of the financial situation, which shows that you as a self-employed person are either already insolvent or will be insolvent in the near future.
The precise definition of insolvency for the debtor can be found in Section 17 Paragraph 2 InsO :
"Insolvency occurs when you, as a debtor, are unable to meet your payment obligations when they fall due. In general, you are considered to be insolvent when you have stopped making payments."
Section 18 paragraph 2 InsO defines impending insolvency as follows:
"You as a debtor are at risk of becoming insolvent if you are likely to be unable to meet your existing payment obligations when they fall due."
In practice, this means that insolvency can be considered for you as a potential self-employed person if you have liquidity bottlenecks of at least 10 percent within three weeks and you CANNOT assume that you will be able to settle the bottlenecks in the near future.
Especially if you go bankrupt as a self-employed entrepreneur , you should definitely seek the support of a competent debt counseling, but at least a non-binding initial consultation claim.
As a self-employed individual, you are generally liable with your personal assets in the event of company insolvency . We will go through each step with you in detail over the phone and take the time to make you aware of your rights.
One advantage, for example, is that you can continue to run your business during insolvency and thus, if possible, get out of the debt trap more quickly.
Frequently asked questions about insolvency advice and debt settlement
What exactly is standard insolvency for companies?
Standard insolvency is a legal procedure used to resolve the insolvency of a company, self-employed person or freelancer. In contrast to consumer insolvency, which is intended for private individuals, standard insolvency is aimed specifically at companies.
The application for standard insolvency can be filed either by the entrepreneur himself if he is insolvent and there is no prospect of improvement, or by creditors who can no longer enforce their outstanding claims.
During the proceedings, an insolvency administrator is appointed to manage the company's assets and satisfy creditors as far as possible.
The aim of standard insolvency is to distribute the company's assets fairly among the creditors and to ensure an orderly winding up of the business operations.
Measures such as an insolvency plan or self-administration restructuring can also be used to avert insolvency or to continue the company.
What is insolvency in self-administration proceedings?
The self-administration procedure is a legal framework for companies that wish to reposition themselves while continuing to operate their business.
In contrast to regular insolvency proceedings, in a self-administration procedure the management retains entrepreneurial responsibility and manages the restructuring itself.
What are the advantages of the self-administration procedure?
The self-administration procedure offers companies the opportunity to take their restructuring into their own hands and continue to be active on the market. In comparison to regular insolvency proceedings, in which an insolvency administrator is appointed, the management retains full entrepreneurial responsibility. This makes it possible to react more quickly and flexibly to the challenges of the market.
The self-administration procedure also offers the opportunity to create a restructuring plan on your own. This plan can be tailored to the individual needs of the company. This means that the restructuring measures can be designed more effectively and implemented more quickly.men for companies that want to reposition themselves while continuing to operate.
In contrast to regular insolvency proceedings, in a self-administration procedure the management retains entrepreneurial responsibility and manages the restructuring itself.
What does simplified insolvency mean for companies?
In contrast to the conventional insolvency procedure, there are some differences in the simplified insolvency procedure .
One example of this is that the reporting date at which creditors decide on the rescue and restructuring of a company is no longer required. Instead of an insolvency administrator, a trustee is appointed to monitor and control the process.
The simplified insolvency procedure also offers a number of advantages , such as faster processing and a higher success rate in the restructuring of companies. It is aimed primarily at small and medium-sized companies that are having difficulty meeting their financial obligations.
However, it is important to note that the simplified insolvency procedure is not suitable for all companies and that it also has some disadvantages. For example, the costs can be higher than a traditional insolvency procedure and it can be more difficult to attract new investors.
In any case, it is advisable to consult an experienced lawyer or debt & insolvency advisor to decide whether the simplified insolvency procedure is the right choice.
Read also:
GmbH successfully continued despite impending insolvency
Bankruptcy is often only available as a last resort. Keeping an overview will protect you from drastic mistakes and further financial difficulties.
As managing director of a GmbH, you can use the following information to get an overview of the necessary steps.
Read also:
Insolvency rejected due to lack of assets
An application for insolvency proceedings can be rejected due to a lack of assets and thus not opened. “Missing assets” refers to the assets of the respective company that has applied for insolvency.
Read also:
protective shield procedure for companies
Even if it is often misrepresented in articles and the media: the protective shield procedure is already an insolvency procedure.
What is the protective shield procedure for companies?
The protective shield procedure is a special form of insolvency in self-administration in Germany. This procedure was introduced to give companies that have run into financial difficulties but are not yet insolvent a chance to restructure.
Read also:
insolvency plan procedure & insolvency plan
The insolvency plan procedure can be applied both in corporate insolvency and in private insolvency .
The debtor or the insolvency administrator draws up a plan to rehabilitate the economic situation and satisfy the creditors, which must then be confirmed by the creditors and the court. Where and how can the insolvency plan procedure be implemented? be used?
Competent debt and insolvency advice in the greater Stuttgart area
Welcome to the website of the SIC Debtor Insolvency Center e. V. in Stuttgart. We are your contact for all questions about debt and insolvency. Regardless of whether you are facing insolvency proceedings privately or professionally - we will help you professionally. Discover our advisory services and initial information about your options. We are here to help you!"
About Us
Find out more about me and my team at SIC Debtor Insolvency Center e. V. Our expertise is based on personal experience and professional qualifications.
Contact us
Do you have questions about insolvency advice or do you need support? Contact us conveniently via WhatsApp, telephone or email. Our team is ready to help you. Don't hesitate to contact us!
Our partners and awards
-
Known from Focus Online
to the articleOur expertise in debt counseling and insolvency administration has been recognized by Focus Online.
-
BS Inso
Partner of BS Inso – Together with BS Inso, we are committed to effective solutions in insolvency consulting.
-
GoldWert assessment
GoldWert Rating – Our debt settlement and insolvency services are awarded and recommended by GoldWert.
-
Good Morning Germany
Partner of Guten Morgen Deutschland – We are proud to be mentioned in the well-known program for our expertise in insolvency consulting."
-
German Lawyers' Association for Restructuring
Member of the German Lawyers Association for Restructuring – We work closely with the association to offer you the best solutions in insolvency advice
