Legal details on the insolvency plan procedure:

The insolvency plan procedure is regulated in Germany in the Insolvency Code (InsO), in particular in §§ 217 to 269 InsO.


The essential legal basis of the insolvency plan procedure can be summarized as described on the following page.

Summary - Insolvency plan proceedings & legal situation in 2023 / 2024

    Initiation of the procedure (Section 217 InsO) Content of the insolvency plan (Section 218 InsO) Groups of creditors (Sections 222 to 225 InsO) Confirmation of the insolvency plan (Sections 248 to 251 InsO) Effects of the confirmation (Sections 253 to 259 InsO) Fulfillment of all obligations in the insolvency plan according to InsO § 227

Initiation of the procedure (§ 217 InsO)

An insolvency plan procedure can be initiated by the debtor himself or by the insolvency administrator. A preliminary insolvency plan must be submitted to the insolvency court. There are some legal things and laws to consider. Source: https://www.kpb-inso.de/kommentar/inso-k0217/

Content of the insolvency plan (§ 218 InsO)

The insolvency plan consists of an explanatory report and a design part. The reporting section must present the debtor's economic situation and explain the planned measures. The design part must regulate the legal effects of the plan, in particular with regard to the satisfaction of creditors and the legal status of the debtor. Source: https://www.gesetze-im-internet.de/inso/__218.html

Groups of creditors (§§ 222 to 225 InsO)

The creditors are divided into groups in the insolvency plan. Each group votes separately on the plan. Source: https://www.kpb-inso.de/kommentar/inso-k0222/

Confirmation of the insolvency plan (§§ 248 to 251 InsO)

The insolvency plan requires the consent of the creditors and confirmation by the insolvency court. The creditors vote on the plan in a creditors' meeting. The court will uphold the plan if there are no legal concerns and if the creditors whose rights are affected by the plan have consented. Source: https://dejure.org/gesetze/InsO/248.html

Effects of the confirmation (§§ 253 to 259 InsO)

With the confirmation of the insolvency plan by the court, the insolvency proceedings are terminated. The measures provided for in the plan are implemented. Creditors will receive a quota on their claims under the terms of the plan. Any remaining debts can be waived and the effect of the cancellation comes into force. Source: https://dejure.org/gesetze/InsO/259.html

If all obligations in the insolvency plan are fulfilled (according to InsO § 227), the debtor is released from his remaining debts

With the satisfaction of the insolvency creditors provided for in the formative part, the debtor is relieved of his other liabilities to released from these creditors, unless otherwise defined in the insolvency plan.

Source: https://www.gesetze-im-internet.de/inso/__227.html


>> Further information on the insolvency plan procedure can be found here <<

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