Insolvency for business customers
Insolvency
How insolvency proceedings work
The standard insolvency proceedings also end after three years in debt freedom. Contact us today for a free, no-obligation consultation! Standard insolvency proceedings are an option provided by the Insolvency Code to become debt-free within three years. During the insolvency proceedings, the debtor retains at least an allowance of €1,340.00 per month, which they can freely dispose of. This allowance is increased in the case of maintenance obligations such as spouses and/or children. If your income is above the exempt amount, the attachable portion is transferred and benefits the creditors.
Standard insolvency proceedings apply to legal entities (e.g. GmbH, UG etc.), self-employed persons and former self-employed persons. In the case of formerly self-employed persons, however, only if they have 20 or more creditors at the time the application to open insolvency proceedings is filed or if there are claims against them from employment relationships. Receivables from employment relationships are wage and salary claims from former employees as well as claims from the tax authorities, e.g. for wage tax, and from social security institutions. Before filing for insolvency, you should carefully check whether you want to continue your business or whether you want to discontinue your business or self-employment. If you decide to continue your business, the insolvency administrator will usually release your self-employed activity.
If you have fulfilled your obligations, you will receive residual debt discharge after three years. This means that from this moment on you are debt-free again and can lead a carefree life.