Is the liquidator not to be confused with the insolvency administrator?

Posted on by Skye Newman


Is the liquidator not to be confused with the insolvency administrator? The liquidator should not be confused with the insolvency administrator, who is appointed and supervised by the insolvency court to assist a company in the proper conduct of insolvency proceedings in accordance with the Insolvency Regulation (InsO).

When can liquidation be initiated? Liquidation can only be initiated if there is no threat of insolvency or if there is a reason for filing for insolvency which forces the managing directors to file for insolvency proceedings.

What is meant by insolvency? "In the case of insolvency, the GmbH is stricken but not dead, whereas in the case of liquidation its death is a done deal". While the aim of liquidation (see here) is the complete termination of the company, the insolvency proceedings primarily serve only to satisfy the company's creditors.

What is the difference between an insolvency and a liquidation?

What is the difference between an insolvency and a liquidation? "In the case of insolvency, the GmbH is stricken but not dead, whereas in the case of liquidation its death is a done deal". While the aim of liquidation (see here) is the complete termination of the company, the insolvency proceedings primarily serve only a

What is the goal of liquidation?

While the aim of liquidation (see here) is the complete termination of the company, the insolvency proceedings primarily serve only to satisfy the company's creditors. What happens to the company in the further course of the proceedings is a "minor matter".

What is the temporary insolvency administrator?

The preliminary insolvency administrator checks whether the reason for insolvency actually exists and whether there are sufficient assets to cover the costs of the proceedings. At a creditors' meeting, the insolvency administrator must report on the economic situation of the company (debtor) and its causes.

What is the legal basis for the remuneration of the insolvency administrator?

The easiest way to start is with the remuneration of the insolvency administrator. The legal basis is the Insolvency Remuneration Ordinance (InsVV). The basis for calculating the remuneration is the value of the insolvency estate.

How does the activity of the insolvency administrator end?

The activity of the insolvency administrator ends with the termination or discontinuation of the insolvency proceedings. The insolvency administrator may then also claim his remuneration as procedural costs pursuant to section 63 (1) of the Insolvency Code (InsO), whereby the remuneration regulations under insolvency law (InsVV) shall apply.

Who can change the preliminary insolvency administrator?

The provisional insolvency administrator can also become the "real" one later. But apart from whether it is the provisional one or not, there is also the possibility of changing him. Because you can change the insolvency administrator - regardless of whether it's a private insolvency or a corporate insolvency.

How is the opening of insolvency proceedings announced?

The opening of insolvency proceedings is publicly announced in the insolvency register. Through this public announcement, third parties can also obtain information about the insolvency of a debtor. The insolvency proceedings are associated with costs that must be borne.

How can an insolvency opening be carried out? In the event of the opening of insolvency proceedings, the publication may be made online, by notice or in the Official Gazette. If the grounds for insolvency cease to exist, a publication may be withdrawn from the insolvency proceedings even after they have been opened. Likewise, a payment by the debtor after an insolvency opening may negate the previously existing grounds.

What is the purpose of liquidation?

Abw." for "in liquidation"). The purpose of liquidation is the termination of current business operations with the aim of distributing the remaining assets consisting exclusively of cash (so-called liquidation proceeds) to the shareholders after all liabilities have been settled.

When will the liquidation proceeds be distributed to the members? Distribution of the liquidation proceeds to the members at the earliest after the expiry of one year after the announcement of the dissolution, whereby the ratio of the capital assets to each other is to be taken as a basis first.

How different are the goals of insolvency proceedings for a limited liability company?

As different as the objectives of liquidation and insolvency of a GmbH are, as different are the reasons. Insolvency proceedings for a GmbH can be applied for by the debtor and the creditor. The opening of insolvency proceedings is only permissible if there is a reason for opening the proceedings.

What is the main objective of the manager in an insolvency?

The main objective of the managing director is his personal release from liability. In the event of insolvency, most managing directors underestimate the risk of ultimately having to assume liability with their personal assets (so-called "liability to pass through").

Has the distribution of the insolvency estate been completed?

Once the insolvency estate has been distributed, the insolvency court shall terminate the insolvency proceedings. In the case of companies, in particular insolvency proceedings relating to the assets of a GmbH or a GmbH & Co. KG, the insolvency proceedings are terminated.

What are the reasons for the insolvency of a limited liability company?

There are three reasons for insolvency: imminent solvency, insolvency and overindebtedness. When a GmbH is insolvent in an individual case depends on the respective financial situation of the company. What are the consequences of the insolvency of a GmbH?

What is the conventional liquidation of the LLC?

The conventional liquidation of the GmbH also entails publication in the Federal Gazette. This gives rise to certain lock-up periods, but these can also be circumvented. There are various ways to terminate a GmbH. In the case of insolvency, the GmbH's assets are examined and insolvency proceedings are initiated or rejected.

How is the liquidation of creditors carried out? In addition, the call for creditors is published in the Federal Gazette. A blocking year begins, during which creditors can register. After this period, the liquidation is also completed, all open items have been cleared and the GmbH's assets have been liquidated or sold off.

Who is considered insolvent?

Who is insolvent or who is considered insolvent? Debtors whose expenses are higher than their income are insolvent. Another term for this is insolvency. Sometimes "insolvency" also refers to the actual insolvency proceedings.

Which creditors file for bankruptcy? If a person files for personal insolvency or a company for regular insolvency, the creditors - i.e. those to whom the person concerned still owes money - must file their claims. However, according to insolvency law, there are different creditors in insolvency.

What applies in the event of employer insolvency?

In the event of an employer's insolvency, it is important to note that different notice periods apply. According to Section 113 of the Insolvency Code (InsO), the employment relationship can be terminated in this case by both the employer and the employee with a maximum notice period of 3 months to the end of the month.

When is a company considered insolvent?

Officially, a company is only considered insolvent once insolvency proceedings have been initiated. According to Section 16 of the Insolvency Regulation, at least one of the following three reasons for commencement must apply: Insolvency (§17 InsO): The company is unable to meet due payment obligations.

What is insolvency proceedings?

Insolvency proceedings - Legally regulated process of insolvency. In insolvency proceedings, the interests of creditors and debtors are taken into account equally. As already mentioned at the beginning, various interests must be taken into account in the event of insolvency. The insolvency proceedings take care of this.

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