Purchase from insolvency

INSOLVENCY

If your company is insolvent, you have the option of buying your own insolvent company from the insolvency administrator without the legacy assets, provided you can find an external lender or have sufficient private assets that are not part of the insolvency estate. Buying a company out of insolvency can offer you significant opportunities and advantages if you succeed in anticipating and subsequently eliminating potential risks. If you wish to continue your own business, you have the option of buying it out of the insolvency estate from your private assets or possibly through a family member of the insolvency administrator. The great advantage of a purchase out of insolvency is that you do not take on the company’s legacy burdens, so you can make a fresh start with your company without the liabilities. With the help of insolvency law regulations, personnel adjustments can also be implemented more easily during restructuring and unfavorable contractual obligations (e.g. expensive leasing agreements) can be terminated prematurely. In this way, the company can be reorganized in the personnel area and the employment law risk can be significantly limited. It is important that you act quickly here, as the insolvency administrator has a great interest in selling the company quickly once the insolvency substitute benefits have expired, as otherwise high costs can quickly be incurred due to the wages that are then due.

Important to know

Information on

No takeover of legacy assets:

In an asset deal, the buyer takes over all of the company's assets in return for payment of a purchase price. This means that the buyer only receives the assets and can make a "fresh start" with the purchased company without having to take on the legacy burdens. In contrast to purchases outside of insolvency, there is also no liability risk for tax liabilities, for example.

Insolvency proceedings must be opened:

Before a purchase out of insolvency can be considered, insolvency proceedings must have been opened against your company.

Existing contracts remain with the insolvency administrator:

Current contracts remain with the insolvency administrator. This can be an advantage if you do not need these contracts, for example leasing contracts. It can also provide a good opportunity to conclude new contracts at improved conditions. In the event that you want to continue a contract, you should ensure in advance that this contract is transferred to you as the buyer by the insolvency administrator.

Possibility of restructuring personnel:

In most cases, it only makes sense to continue running your insolvent company if you do not take on the entire workforce. According to labor law regulations, the acquisition from insolvency leads to a transfer of business. This means that all employees must be taken on under the previous conditions. The insolvency administrator also has no special right of termination for employment relationships. However, the insolvency administrator can give notice of termination for operational reasons with a shortened notice period of a maximum of three months. He can justify this, for example, by stating that the jobs will be eliminated according to the new purchaser's concept.

High time pressure:

You have to act very quickly, because the insolvency administrator is initially relieved of the burden of continuing the insolvent business after the opening of insolvency proceedings through the so-called insolvency substitute benefits. This is because the employee's wages are covered by the employment agency for three months. After that, however, he is responsible for the continuation of business operations at full cost - including employee wages. For this reason, he has a great interest in selling your company very quickly after the insolvency proceedings have been opened.

1. contact

3. contacting the creditors

If you decide to get out of debt with us, we will first contact all your creditors to find out the current status of your debts. We will also present your power of attorney and will be your sole contact for your debt matters from this point on.

5. date of signature of insolvency petition

The next step is to arrange an appointment with you on site to sign the insolvency petition. Our lawyer will go through the entire insolvency application with you and explain everything to you in detail in a personal meeting.

7. contacting and negotiating with the insolvency administrator

We immediately contact the insolvency administrator on your behalf and inform him that you intend to buy your company. We will now negotiate the purchase price for you and decide which contracts you would like to take over.

2. free initial consultation

In our free initial consultation, you will get to know us and the debt advisor responsible for you as well as our lawyer, if applicable, who will accompany you on your way. Please bring all available documents from your creditors and your company with you to the meeting so that we can get an overview of your financial situation. Your advisor will then show you the best way out of debt for you and explain to you what costs you will incur and whether buying out of insolvency is a sensible option in your case.

4. list of all liabilities

Once we have contacted all your creditors, we will draw up a list of your debts.

6. opening of insolvency proceedings

Insolvency proceedings are opened two to four weeks after the insolvency application is filed with the competent local court. Further information

8. purchase out of insolvency

You buy your company from the insolvency administrator without legacy assets and can make a fresh start.