Detailed description
If you have debts and cannot repay them, you can apply for bankruptcy proceedings.
Insolvency proceedings serve to ensure an equal distribution of available assets among creditors. They can be initiated at the request of either the debtor or the creditors.
Eligible to apply are:
- In the case of a legal entity such as a stock corporation, limited liability company, or association, this includes not only the creditors but also every member of the representative body, i.e., managing director or board member. In the case of a company without management, this also includes every shareholder.
- In the case of a stock corporation or a cooperative, each member of the supervisory board also has to do so.
- In the case of a company without legal personality (general partnership, limited partnership, general partnership, civil law partnership, or partnership limited by shares), each personally liable partner must file an application individually, even if they are otherwise only authorized to represent the company jointly with another person. The situation is different for a self-application due to impending insolvency: in this case, an individual can only file an application if they also have individual authorization to represent the company. If insolvency or excessive indebtedness occurs, there is even an obligation to file an application.