Full-Service Law Firm: Clear Advice in German Insolvency Law
The legal team at Schlun & Elseven Rechtsanwälte advise and represent clients in all German insolvency matters. The conduct of insolvency proceedings for companies in Germany and the assertion of insolvency claims are part of our daily tasks in this field. Insolvency proceedings can be stressful for the parties involved, and knowing the steps which need to be taken is vital. Our legal team consists of experts in the field with many years of experience, and we can be relied upon during difficult times to provide you with the clear advice you need. As a full-service law firm with industry-specific expertise, you can be assured that you will receive comprehensive service. Contact us now at our email address: info@se-legal.de or by phone at: +49 221 93295960. Our lawyers look forward to working with you.
What is Insolvency under German Law?
In simple terms, insolvency means the inability to pay one’s creditor. In legal terms, a company is insolvent if it is only able to pay less than 90% of its liabilities over a period of at least three weeks and therefore has ceased the payments. If the management realises that it cannot meet its financial obligations anymore, or not longer than throughout the next 12 months, the threat of insolvency is apparent. The basic legal sources governing the issue in Germany are the Insolvency Regulation (Insolvenzverordnung – InsO) and the Avoidance of Transactions Act.