insolvency plan proceedings

How can the insolvency plan procedure 2025 be used for restructuring / debt relief?

table of contents

• Differences between personal insolvency and corporate insolvency
• A way to restructure your business
• Guide to the regular insolvency plan procedure
• Structure of the insolvency plan: Two important sections
• coordination and implementation of the insolvency plan
• Implementation of the insolvency plan and continuation of the company

The insolvency plan procedure can be used in both corporate insolvency and private insolvency . In both cases, the aim is to rehabilitate the debtor's economic situation and satisfy the creditors . The plan must be confirmed by the creditors and the court.

Differences between personal insolvency and corporate insolvency

Here is an overview of the main differences between the insolvency plan procedure for private individuals and companies:

Please note that this is a very simplified representation of the differences between the insolvency plan procedure for private individuals and companies.

A way to restructure your business

The insolvency plan procedure offers companies in financial difficulties the opportunity to restructure themselves while continuing to operate . It enables a tailor-made solution that takes into account the interests of both the creditors and the company. If both the court and the creditors agree, the planned insolvency replaces the regular insolvency procedure.

Guide to the regular insolvency plan procedure

1. Advice and preparation :
   An experienced insolvency advisor or lawyer will assess your financial situation and work with you to develop possible strategies. It is important that you seek professional help as early as possible.

2. Application for insolvency proceedings :
   The application for the opening of insolvency proceedings is submitted to the competent insolvency court. A preliminary insolvency plan should be enclosed. This insolvency plan provides an initial overview of the company's economic situation and describes steps for its restructuring.

3. Preparation of the final insolvency plan :
   After the insolvency proceedings have been opened , the final plan is drawn up , which describes the restructuring measures and the impact on creditors in detail. This ideally contains detailed information about the company's financial situation , the planned restructuring measures and their impact on creditors .

Structure of the insolvency plan: Two important sections

• Performing part :
  This section describes the economic situation and planned measures to advance the insolvency proceedings ( basis for the planned structuring of the rights of the parties according to Section 220 InsO ). This section provides the creditors with important information so that they can form an idea of ​​whether they should agree to the plan or not.
• Design part : This is where it is determined how the rights of those involved will change as a result of the plan. The creditors are divided into groups and each group is given certain rights (Section 221 InsO). All creditors within a group are treated equally. This section also states how the debts are to be paid. For example, it can be determined which debts are to be paid immediately, which are to be paid later and which are to be forgiven completely.

coordination and implementation of the insolvency plan

The plan is submitted to the creditors for a vote. If all creditor groups agree and the plan is confirmed by the court, implementation can begin.

After that, the insolvency proceedings are lifted and the company can continue to operate.

Implementation of the insolvency plan and continuation of the company:

Once the insolvency plan has been confirmed, the insolvency proceedings are lifted and the company can continue its business activities. The insolvency plan is implemented and the company is rehabilitated.

If you find yourself in a financially difficult situation and are considering whether the insolvency plan procedure is suitable for your company, do not hesitate to contact us .

We are at your side with our expertise and help you find the best path for your company.