The insolvency court may initiate insolvency proceedings only if there is a legal reason for opening the proceedings. According to §§ 17 to 19 InsO, the initiation takes place either in the case of already occurred or imminent insolvency on the one hand or over-indebtedness of the company on the other hand. We take a closer look at when the respective feature is fulfilled and what consequences the subsequent elimination of the opening reason has for the entrepreneur!
According to § 16 InsO, the opening of insolvency proceedings requires that there is a so-called reason for opening. Conversely, this means that the competent insolvency court can immediately reject the application if the applicant does not prove the existence of the corresponding reason. With the examination, the court can also commission experts and experts at the expense of the debtor.
Reasons for opening are:
This article does not replace tax or legal advice in an individual case. Facts, current law, jurisdiction, documentation and implementation remain decisive.