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Bankruptcy in Germany is governed by the Insolvency Code, called Insolvenzordnung. The rules are federal, which means they apply uniformly across Germany. Local practice and jurisdiction are handled by the regional insolvency courts and local agencies. For residents and businesses in Kitzingen in Lower Franconia Bavaria, insolvency matters are typically handled through the competent insolvency court for the region and supported by local debt counseling providers. The goal of German insolvency law is twofold - to fairly distribute a debtor’s assets among creditors and to give honest debtors a fresh start through discharge of remaining debts after a set period.
There are two main types of proceedings. Consumer insolvency applies to private individuals without significant business activity. Regular insolvency applies to companies and self-employed persons with ongoing business or complex finances. Both procedures can lead to a discharge of residual debt for natural persons after a statutory period, provided the debtor cooperates and no grounds for denial exist.
Proceedings are public in certain respects, for example through official insolvency announcements. Courts appoint an insolvency administrator in company cases or a trustee in consumer cases. In most consumer cases you must attempt an out-of-court settlement with creditors before filing, typically with the help of a recognized debt counseling agency or a lawyer.
Bankruptcy law has strict deadlines, formal requirements, and strategic choices that affect your assets, income, and future credit. A lawyer helps you choose the right procedure, prepare complete filings, and avoid mistakes that can lead to delays or denial of discharge.
You may need legal help if you are a private individual facing multiple garnishments, a bank account freeze, mortgage arrears, or enforcement actions. A lawyer can set up a viable plan, protect essential assets within the law, and guide you on using a protected account to safeguard basic living funds.
Self-employed people and company directors benefit from legal advice because the regular insolvency procedure is more complex. Issues include contract continuation, treatment of secured assets, tax liabilities, and business continuation or shut down. Directors face a legal duty to file for insolvency without undue delay and at the latest within three weeks after a company becomes insolvent or over-indebted. Violations can trigger civil liability and criminal exposure. A lawyer helps assess insolvency triggers, prepare filings, and reduce personal risks such as liability for prohibited payments after insolvency occurs.
Businesses considering restructuring may explore an insolvency plan, self-administration, or pre-insolvency restructuring under separate law. These tools require careful planning and negotiation with creditors. Legal counsel is key to structuring proposals, negotiating standstills, and preserving value.
If creditors challenge transactions as avoidable transfers, or if the administrator asserts clawback claims, a lawyer can assess defenses, negotiate settlements, or litigate. When the tax office or social insurance institutions file claims, legal advice ensures proper classification and handling.
The Insolvency Code sets the framework for opening proceedings, administering the estate, and discharging debt. Natural persons can obtain a discharge of residual debt after three years from opening, provided they meet cooperation duties and no statutory grounds for denial apply. The discharge does not cover certain debts, for example fines, some maintenance arrears arising from intentional misconduct, and debts from certain intentional criminal acts. Tax debts are in principle dischargeable unless they arise from tax crimes, but tax authorities may assert specific rights and liens.
Consumer insolvency usually requires an attempt to reach an out-of-court settlement with creditors. A recognized debt counseling agency or a lawyer must certify that the attempt failed before you can file. After filing, the court may open simplified proceedings and appoint a trustee. During the proceeding and the subsequent good conduct period, attachable income portions are assigned to the trustee for distribution.
Regular insolvency applies to businesses and many self-employed individuals. The court appoints an insolvency administrator to secure assets, examine claims, and possibly continue operations. There are options for an insolvency plan, self-administration, or protective shield proceedings in suitable cases, which aim to reorganize instead of liquidate. Pre-insolvency restructuring under separate legislation may also be available for companies that are not yet insolvent but face imminent difficulties.
Secured creditors, such as mortgage lenders, have separation and preferential rights in collateral. If collateral is sold, proceeds pay the secured creditor first, and any shortfall becomes an unsecured claim. Leases, employment relationships, and ongoing contracts are subject to specific insolvency rules that can allow continuation or termination under court and administrator oversight.
Wage and salary attachments are governed by civil procedure rules with statutory exemption thresholds. You can convert a current account into a protected account known as a P-Konto to safeguard a legally defined basic monthly amount against attachment. The protected amount is adjusted regularly and can be increased for dependents or certain social benefits with appropriate certificates.
In Kitzingen and the surrounding region, jurisdiction for insolvency matters lies with the competent regional insolvency court. Local recognized debt counseling services, the employment agency for insolvency wage benefits where an employer is insolvent, and professional chambers support debtors and businesses with information and certificates required for filings.
Consumer insolvency is designed for private individuals without significant business activities. It requires an out-of-court settlement attempt and uses a simplified court procedure with a trustee. Regular insolvency applies to companies and many self-employed persons. It involves an insolvency administrator, business continuation or liquidation decisions, and options like an insolvency plan or self-administration.
For natural persons, discharge of residual debt is generally available after three years from the opening of proceedings. The exact timeline depends on how quickly the court opens the case and on your ongoing cooperation. Company liquidations vary in length based on asset sales and litigation. A tailored plan procedure can sometimes speed up completion.
Essential household items remain protected. Secured assets like a mortgaged home or financed car may be realized if payments are not maintained or if equity must be used to satisfy creditors. In some cases, you can keep a vehicle needed for work if the value and costs are reasonable and you can maintain payments. Legal advice helps assess options such as redemption, substitution, or negotiating with secured creditors.
Debts from intentional torts or crimes, court fines, some maintenance arrears arising from intentional misconduct, and certain claims following criminal tax offenses are typically excluded. New debts that arise after the proceeding opens are not covered. A lawyer can review your specific debts to determine dischargeability.
Yes. Consumers must attempt an out-of-court settlement with creditors. A recognized debt counselor or lawyer must certify the attempt and its failure. This certificate is filed with the court. Skipping this step can lead to rejection of your application.
Once proceedings are opened, individual enforcement by unsecured creditors is generally stayed. Attachments are redirected so that attachable income portions flow into the insolvency estate for distribution. You still keep the statutory non-attachable portion of your income.
You can maintain a bank account. Converting it to a P-Konto protects a legally defined monthly basic amount from attachment. The protection can be increased with certificates for dependents, child benefits, or certain social benefits. Ask your bank to convert your account promptly and provide any needed documentation.
If your company is insolvent or over-indebted, you must file without undue delay and at the latest within three weeks. Missing this deadline can trigger personal liability for payments made after insolvency occurred and potential criminal consequences. Seek immediate legal advice to assess insolvency criteria and prepare the filing.
Tax and social insurance institutions file their claims in the insolvency like other creditors and may have special rights if collateral exists. For natural persons, many tax debts are in principle dischargeable unless they stem from criminal conduct. Company managers can face personal liability in specific constellations. Always obtain advice early, especially if withholdings or VAT are involved.
Court and trustee costs apply. For consumers and many natural persons, the court can defer costs if you cannot pay upfront. Lawyer or counseling fees depend on scope and complexity. Recognized debt counseling services may offer free or low cost help and can issue the required certificate for consumer filings.
The competent insolvency court for the Kitzingen region can provide information about filing requirements, forms, and office hours. Contact the court registry for guidance on where to submit applications and how to access case announcements.
Recognized debt counseling in and around Kitzingen includes Caritas, Diakonisches Werk, and other accredited social service organizations. These offices assist with budgeting, settlement attempts, certificates under the Insolvency Code, and court forms.
Verbraucherzentrale Bayern offers statewide consumer advice on debt and insolvency. They provide educational materials, cost overviews, and individual counseling options.
The employment agency can advise on insolvency wage benefits if your employer is insolvent, including eligibility, deadlines, and required proofs.
For businesses, the Chamber of Industry and Commerce Würzburg-Schweinfurt and the Chamber of Crafts Unterfranken provide restructuring and crisis advice, referrals, and training on liquidity management and early warning indicators.
The official federal insolvency announcements portal publishes case openings, deadlines, and key orders. This helps you monitor claim filing dates and creditors meetings.
The Bavarian justice information services provide forms, general guidance, and contact points for courts and registries in the region.
Clarify your financial situation by listing all debts, creditors, assets, income, and ongoing contracts. Gather documents such as loan agreements, enforcement notices, tax assessments, pay slips, and bank statements. This will help any advisor assess your case quickly.
Contact a recognized debt counseling service in Kitzingen or consult a lawyer experienced in insolvency. If you are a consumer, arrange the mandatory out-of-court settlement attempt and obtain the certificate needed for filing. If you run a business, seek immediate advice on whether regular insolvency, an insolvency plan, self-administration, or pre-insolvency restructuring fits your situation.
Stabilize your day-to-day finances. Convert your account to a P-Konto to protect the statutory basic amount, and avoid creating new debts. Do not favor individual creditors shortly before filing, as certain payments can be challenged later. Keep insurance for essential risks in place.
Observe all deadlines set by the court and the insolvency administrator or trustee. Attend required meetings, provide truthful and complete information, and report changes in income or employment. Proper cooperation increases the chances of a timely discharge and protects you from sanctions.
If you are a company director and insolvency or over-indebtedness is suspected, start a documented assessment immediately and escalate to legal counsel. Meeting the filing duty within the legal timeframe reduces personal liability risk and preserves restructuring options.
With early action, the right procedure, and professional guidance, most debtors in Kitzingen can navigate insolvency efficiently and work toward a sustainable fresh start.
