Duty to file for insolvency in Corona times

Duty to file for insolvency in Corona times

Temporary suspension of insolvency filing obligations

Thanks to various facilitations, companies and associations remain able to act in the corona crisis. The obligations to file for insolvency (§§ 15a InsO, 42 (2) BGB) are suspended if insolvency or over-indebtedness has occurred due to a corona pandemic. In this case, the liability of the managers for late filing or failure to file for insolvency also ceases to apply and the liability for violations of the statutory payment prohibitions (§§ 64 S. 1 GmbHG, 92 Para. 2 AktG) is mitigated

Under what conditions do the alleviations apply?

The obligation to file for insolvency is not generally suspended. The obligation to file for insolvency continues to apply if the insolvency maturity is not based on the effects of the Corona pandemic or if there is no prospect of eliminating an existing inability to pay.

If the debtor was not (yet) insolvent on December 31, 2019, it is assumed by law that the insolvency was due to the Corona Pandemic and there are prospects of eliminating an existing insolvency. It is advisable to document the solvency as of 31.12.2019 and, if necessary, to obtain a corresponding confirmation from an expert.

Subsidy for restructuring expertises

In Hesse, WI-Bank provides a subsidy for the preparation of restructuring reports. The subsidy amounts to 50 % of the costs of the expert opinion, but no more than EUR 10,000. Eligible for application are companies and freelancers whose house bank requires a reorganisation report in accordance with IDW S6 and who are affected by the effects of the corona crisis.

We are fully operational to support you in these challenging times. Please do not hesitate to contact us.