Insolvency

Insolvency law regulates the rights and obligations of all persons affected by the insolvency of a company, i.e. in particular the rights and obligations

• of the debtor company itself (e.g. the obligation to file for insolvency),
• the creditors or contractual partners of the debtor company involved and
• the insolvency administrator.

The aim of insolvency proceedings is to satisfy the claims of all of the company's creditors equally and in the best possible way. However, this is by no means always just about the mere liquidation of the insolvent company. Rather, in the best case scenario, the insolvent company should be enabled to restructure itself and make a fresh economic start.

Contestation in accordance with the Insolvency Code

Insolvency administrators can use an insolvency avoidance to reclaim assets that have been transferred to the insolvency estate under certain conditions. Why is this possible?

Before insolvency proceedings are opened, it is not uncommon for debtors to leave some of their assets to individual creditors. The remaining creditors, who have received nothing more, are naturally disadvantaged as a result. Against this backdrop, insolvency administrators have the option of recovering these outflows - i.e. the assets that have flowed out. This is intended to ensure that all creditors receive the same treatment and that each case is considered differently and individually. For this reason, we recommend that those affected who find themselves facing a challenge to payments received from an insolvency administrator seek advice immediately, even if the claim is made out of court. Contact us at an early stage: our experts will be happy to assist you, help you and represent you.

Self-administration, insolvency plan or protective shield proceedings

In order to restructure your own company instead of winding it up, there are various options available to you: an insolvency plan, self-administration, protective shield proceedings, etc. But which of these options is right for you? Many legal challenges and questions arise here. No matter what stage of insolvency or crisis you find yourself in: We advise you on your options and the various types of proceedings and are happy to represent you.

Managing director liability

If the company you represent as a managing director or board member becomes insolvent or overindebted, the risk of you being personally liable to a considerable extent is particularly high.

But at what point exactly are you liable as the managing director of a GmbH or board member of an AG? Where is the boundary between permissible risk and a breach of duty? What else are you allowed to do when a financial crisis occurs?

We will be happy to answer these and other questions for you - and thereby limit your liability risk in the long term: early legal advice can prevent or at least minimize liability right from the start of the crisis. Our insolvency law experts will help you deal with liability risks and develop individual strategies with you to reduce them.

Insolvency of customers or suppliers

Even within supply chains, not everything always runs smoothly. Many companies are suffering enormously due to the coronavirus pandemic, for example, and are therefore having to file for insolvency. But what about your existing orders if your customer goes bankrupt? Is it possible to continue the contractual relationship if a contractual partner becomes insolvent? We will be happy to answer them and help you in this delicate situation. Our insolvency law experts will provide you with expert advice on all potential risks and protection options at every stage of the proceedings: What can you do during the insolvency application or insolvency proceedings that have already been opened? Under what conditions are you entitled to payment for a service? Can you terminate your supplier in the event of late payment? Contact us and get our recommendations for action. Our lawyers will help you.

Filing for insolvency

You can no longer pay? Is the mountain of debt not getting any smaller? If your company is heading for a crisis, we are your rock in the surf. Our team of insolvency law experts will advise you on the options for saving your company: What do companies, sole traders and solo self-employed people need to consider when filing for regular insolvency? Which procedure can and should you choose? The sooner you come to us, the more options are open to you: Restructuring? Insolvency under self-administration, with an insolvency plan or classic insolvency? We advise and represent you - whether you are a GmbH, AG, sole trader or solo self-employed person. Our lawyers will go through the options available to you with you.

Representation in restructuring proceedings under StaRUG

The Act on the Stabilization and Restructuring Framework for Companies (StaRUG) is intended to help companies to reposition themselves more easily than before, even without court proceedings.StaRUG is a separate restructuring procedure with greater scope for action. It is intended to help companies to restructure more easily without the need for court insolvency proceedings. The special feature of this modern restructuring instrument is that not all creditors have to be affected by the restructuring plan: as the debtor, you can select the parties affected by the plan yourself. We will explain the requirements you need to meet and represent you in your restructuring proceedings to save your company.

The term "Compulsory Enforcement" or "Zwangsvollstreckung" can be intimidating, but what does it actually involve? In a compulsory enforcement, the claims of creditors against their debtors are enforced using the state's means. In other words, the state seizes property or claims from one party to satisfy the claims of the other party. After all, what use is the best judgment if the other party fails to pay afterward?

This is where compulsory enforcement comes into play: You entrust us with the enforcement of payment, delivery, information, and/or prohibition claims. For enforcing the claim, we utilize the enforcement court or the respective bailiffs. Our lawyers enforce your unpaid financial claims in all areas.

International Enforcement

Debtors increasingly attempt to evade their obligations by moving abroad, especially within Europe. However, you as a creditor are not powerless. We handle cross-border debt collection for you. We also provide advice and support for enforcing your claims abroad, set up the necessary conditions, and enforce them on-site.

Claim and Real Estate Enforcement

Once a title of enforcement (e.g., a judgment or order) is available, we undertake the enforcement and seek the most efficient way to realize your claim, keeping costs in mind.In claim enforcement, we have two options: Either we instruct the respective bailiffs to seize your claims, or we process seizure and transfer orders through the enforcement court.

In real estate enforcement, compulsory enforcement targets immovable assets, such as land or buildings. If the other party owns real estate, we have enforcement mortgages registered through the land registry to secure your claims, and subsequently initiate forced sales of the property.For the enforcement of maintenance claims, we calculate the often complex claims and obtain ongoing seizures that do not need to adhere to normal seizure limits.

Debt Collection

Debt collection efficiently realizes and enforces outstanding receivables (your financial claims against third parties), such as unpaid invoices. Speed, efficiency, and low costs are the priorities in debt management. We also address any issues related to statutes of limitations while focusing on your economic interests.

We provide competent advice and guide you through the entire process, representing you both in and out of court, and applying for payment and enforcement orders. We also handle the compulsory enforcement and its monitoring.

Defense Against Enforcement

We effectively defend you against enforcement objections. If you are targeted by such a claim, we represent you in court proceedings. We also review any unlawful enforcement actions taken against you and promptly take countermeasures. Our experts file enforcement objections and raise third-party opposition actions for you.