Can I still start a business during the insolvency process?
April 14, 2024 | 40,00 EUR | answered by Erwin Hausdorf
Dear bankruptcy lawyer,
My name is Jan Weiß and I am currently facing a difficult situation. I am currently in a bankruptcy proceeding and I am wondering if I am allowed to start a new business during this process.
The situation is as follows: My previous company had to file for bankruptcy because it was no longer economically viable. I am now faced with the question of how to proceed professionally. Starting fresh with a new company could be an option for me to get back on my feet.
My concerns are that I do not know if starting a new business during the ongoing bankruptcy process is legally allowed. I do not want to risk any further problems with my bankruptcy trustee or the bankruptcy court and therefore want to clarify in advance if this option is possible for me.
My question to you as an expert in bankruptcy law is therefore: Am I allowed to start a new business during the bankruptcy process? Are there specific requirements or restrictions that I need to consider? What consequences could arise for me if I take this step?
I would be very grateful if you could provide me with information on this matter so that I can plan my professional future accordingly.
Sincerely,
Jan Weiß
Dear Mr. Weiß,
Thank you for your inquiry regarding the establishment of a new company during an ongoing insolvency procedure. This question is indeed of great importance, as legal aspects must be particularly considered in insolvency proceedings.
In Germany, it is generally possible to establish a new company during an insolvency procedure. However, there are certain requirements and limitations that you must take into account. Firstly, you should inform your insolvency administrator about your plans and obtain his approval. The insolvency administrator is responsible for safeguarding the interests of the creditors and must therefore be informed about your business activities.
Furthermore, you should ensure that the new company has no connection to the insolvent company. It should be a completely independent business activity in order to avoid potential conflicts of interest. Additionally, you should ensure that you do not transfer any assets from the insolvent company to the new company, as this could be considered as delaying insolvency proceedings.
It is also important to mention that as an insolvent entrepreneur, you have certain duties and restrictions during the insolvency procedure. For example, you must regularly provide information about your financial situation and must not incur new debts without notifying the insolvency administrator. Additionally, you must ensure that you do not conceal or hide any assets, as this could have criminal consequences.
In terms of the consequences that could arise if you establish a new company during the insolvency procedure, it is important to mention that this depends on various factors. If you comply with the legal requirements and communicate transparently with your insolvency administrator, there should be no major issues. However, the insolvency administrator may scrutinize your business activities more closely and may take action if irregularities are found.
Overall, it is possible to establish a new company during an ongoing insolvency procedure if certain conditions are met. However, it is advisable to seek legal advice beforehand and coordinate with your insolvency administrator to avoid potential conflicts.
I hope that this information has been helpful to you and I am available for any further questions you may have.
Best regards,
Erwin Hausdorf
