What is bankruptcy

Bankruptcy proceedings

What is bankruptcy?

Bankruptcy proceedings are judicial Total enforcement and Debt settlement process. The aim of insolvency proceedings is to collectively satisfy the creditors of an insolvent or over-indebted debtor by liquidating the remaining assets and distributing the proceeds.

Alternatively, a Bankruptcy plan Solvency can be restored in order to maintain the company or self-employment. Natural persons can on request Debt discharge received (ยง 1 InsO).

Table of contents

What types of bankruptcy proceedings are there?

Consumer bankruptcy

Anyone who has never been self-employed will apply for Consumer bankruptcy ask. Often this is misleadingly referred to as personal bankruptcy. A private bankruptcy proceedings can be carried out both as regular or as consumer bankruptcy, as can be seen from the diagram.

Standard bankruptcy

The Standard bankruptcy is the procedure for companies, legal entities, self-employed persons, freelancers, associations, foundations or partnerships. Regular insolvency proceedings are also known as IN proceedings.

Bankruptcy in self-administration

At a Bankruptcy in self-administration The previous management retains the authority to administer and dispose of the company in the standard insolvency proceedings, which has a significant influence on the success of the restructuring.

Protective shield proceedings

Goal one Protective shield proceedings is preparing a renovation at impending insolvency. If the court agrees, an insolvency plan must be submitted within three months.

Insolvency plan proceedings

That too Insolvency plan proceedings takes place within the framework of an ordinary insolvency procedure. The aim of an insolvency plan is to maintain and continue the company through quick debt relief, transfer or liquidation with a partial payment comparison.

Estate insolvency proceedings

When a debtor dies, becomes one Estate insolvency proceedings carried out. This limits the heirs' liability to the estate.

Statutory Regulations

The course of insolvency proceedings is in the Bankruptcy Code (InsO). The insolvency law remuneration ordinance (InsVV) regulates the remuneration of the insolvency administrator, trustee, trustee and creditors' committee.

Further regulations can be found in the Civil Code (BGB), in the Commercial Code (HGB), in the Law on Limited Liability Companies (GmbHG), in the Stock Corporation Act (AktG), in the Code of Civil Procedure (ZPO), in the Tax Code (AO), im Criminal Code (StGB), the Works Constitution Act (BetrVG), the Employment Protection Act (KSchG), the Act to Improve Company Pensions (BetrAVG) and the Act on Foreclosure and Foreclosure (ZVG).

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