The core of insolvency law is the Insolvency Act (InsO), which regulates the commencement, implementation and conclusion of insolvency proceedings together with other laws. In principle, insolvency constitutes an acute insolvency, i.e. the company’s inability to pay outstanding liabilities. In addition to the company, there is the consumer insolvency proceedings, which only affects private individuals.
According to § 11 InsO, insolvency proceedings can be opened on the assets of any natural or legal person. Non-legally competent associations are equivalent to legal persons within the meaning of § 11 (1) sentence 2 InsO. In addition, the opening is possible via the assets of partnerships, in particular GbR, OHG and KG, as well as of heir and matrimonial property associations (§ 11 paragraph 2 number 2 InsO).
If one of the mentioned companies has already been dissolved, insolvency law applies only to the extent that no distribution of assets has yet taken place (§ 11 (3) InsO).
Prerequisite for the commencement of the insolvency proceedings is a reason for opening pursuant to §§ 16 continue the following InsO. This is included:
This article does not replace tax or legal advice in an individual case. Facts, current law, jurisdiction, documentation and implementation remain decisive.