Legal situation in 2024 / 2025

initiation of proceedings (§ 217 InsO)

The insolvency plan procedure can be initiated either by the debtor himself or by the insolvency administrator. A preliminary insolvency plan must be submitted to the insolvency court, whereby certain legal regulations and laws must be observed.
For further information please click here .

Content of the insolvency plan (§ 218 InsO)

The insolvency plan consists of two parts: an explanatory report and a design part.

• Reporting section : This section describes the debtor’s financial situation and the measures envisaged.
• Formative part : This sets out the legal effects of the plan, in particular with regard to the satisfaction of creditors and the legal position of the debtor.
  source

creditor groups (§§ 222 to 225 InsO)

The creditors are divided into different groups. Each of these groups votes separately on the insolvency plan .
Read more here .

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

The insolvency plan requires the approval of the creditors and confirmation by the insolvency court.

• The creditors vote on the plan at a creditors’ meeting .
• The court will confirm the plan provided there are no legal concerns and the creditors whose rights are affected have agreed.
  source

Effects of confirmation (§§ 253 to 259 InsO)

After the insolvency plan is confirmed, the proceedings are terminated and the measures provided for in the plan are implemented.

• The creditors receive a share of their claims.
• Any remaining debt may be forgiven if the plan allows for it.
  Read more here

Fulfillment of all obligations in the insolvency plan (§ 227 InsO)

The debtor will be released from his remaining debts if he fulfills all the obligations stipulated in the plan. The plan must clearly define which liabilities remain.
source