Restructuring and bankruptcy law – Entrepreneurs on the knife edge
As lawyers for restructuring and insolvency law, we will be there for you right from the first doubt.
Colloquially, insolvency is often equated with the going broke or bankruptcy of a company. But while in Germany, from a legal point of view, bankruptcy is a criminal offense and there is no information on going broke, with insolvency it is important to look carefully, differentiate and carefully define the situation of the company.
Insolvency does not necessarily mean the end of a business activity. Rather, the term first describes the business status of a company, which makes various measures and changes absolutely necessary.
In short, insolvency is the acute or impending inability to pay that can be derived from over-indebtedness.
Is your company already insolvent?
Or is there a risk of insolvency?
Are you unsure? Or have you already been charged?
In any case, it is important to act quickly in order to avoid not only serious economic but also criminal consequences.
As lawyers for restructuring and insolvency law, we can help you quickly and easily.
The law on the further development of restructuring and insolvency law
Did you know that on 1 January 2021 the law on the further development of restructuring and insolvency law came into force in most of its parts? See Information box.
The Federal Government and the Ministry of Finance want to modernise German insolvency law and make it more effective. Of course, we are also familiar with all new regulations and planned changes in insolvency law and can advise you competently.
Insolvency criminal law – “well intentioned” can be a criminal offense
While, from your point of view, as a Managing director or self-employed entrepreneur, you act honourably with full commitment and do your best to save your company, preserve jobs and still help your creditors get their money in the long term, a legal situation may long have arisen according to which you are committing a crime.
The most common crimes in bankruptcy criminal law are
- Delayed bankruptcy
- Breach of accounting obligations
- Credit fraud
- Withholding social security contributions
- Favouring creditors
In many cases the entrepreneurs and Managing directors are not even aware that they are committing a crime. They still see a chance to bring the difficult economic situation of their company back into balance, act practically and decisively, but in doing so violate applicable law and unintentionally make themselves liable to prosecution.
If you commit a criminal offense, whether intentionally or out of ignorance, in connection with bankruptcy, then the limited liability of a GmbH, on which you may have relied so far, no longer applies. As a criminal who was just a respectable businessman, you are personally liable for the resulting financial damage.
Whether restructuring or liquidation – we are at your side as lawyers for restructuring and insolvency law
We do not just represent you in court. We also provide you with competent advice on the extent to which a restructuring and continuation of your business is possible using the law to facilitate the restructuring of companies (ESUG).
We accompany you from the first doubt and help you to take the right steps in the event of economic difficulties.
Further development and digitisation in insolvency law
Most of the law on the further development of restructuring and insolvency law came into force on 1 January 2021. According to the Federal government, it should modernise German restructuring and insolvency law and make it more effective.
The law is intended to create a legal framework with the help of which companies can be reorganised outside an insolvency framework in the event of impending, but not yet occurred, insolvency.
In addition, the new regulations are intended to help cope with the economic consequences of the corona pandemic. A digitisation of the insolvency procedure is also planned.
Do not take any unnecessary risks in this sensitive area and contact us as lawyers for restructuring and insolvency law in good time.