Insolvency Law

Second stage of insolvency law reform on the way the core of the reform is an acceleration of the residual debt exemption for all natural persons. Debtor may be exempted then in future after three held after six years of their remaining debt if they meet at least a quarter of the claims and pay the costs of the proceedings. A reduction to five years should be possible if at least the costs of the proceedings be paid in full. In addition, the draft provides for a strengthening of the out-of-court settlement procedure for the consumer insolvency proceedings. The debtor should can replace in the future already in the out-of-court settlement attempt of ablehnender the consent of the individual, the debt cleanup plan creditors of the bankruptcy court.

Also, in the future no out-of-court settlement attempt more must be undertaken if this was obviously impossible. In addition, the draft contains rules to strengthen the rights of creditors in the residual debt exemption procedures and to the Improve the protection of members of housing cooperatives, similar to be protected in the future in the insolvency as tenants. Ultimately, a system for the insolvency of licenses is to ensure that licenses in a bankruptcy of the licensor, while respecting the interests of the creditors can be used. The professionals – and associations called for a reform already for a long time. It is to be hoped that the draft now quickly happened Bundestag and Bundesrat, and then at short notice comes into force. Until then claimed the old rules, in particular as regards the necessity of out-of-court debt cleanup and the duration of the residual debt exemption phase. Within our firm, Mr. lawyer Christian Closhen as a lawyer specializing in bankruptcy law and tax law is your contact for all insolvency law issues.

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