How does bankruptcy affect my existing contracts?
March 8, 2024 | 30,00 EUR | answered by Helma Beck
Dear lawyer,
My name is Emma Eder and I am in a difficult financial situation. I am on the verge of bankruptcy and I am very worried about how this will affect my current contracts.
Currently, I have several contracts in place, such as rental agreements, mobile phone contracts, insurance contracts, and contracts with suppliers. These contracts are very important to me as they cover my basic needs and allow me to manage my daily life.
I am now wondering what will happen if I become insolvent. Will my contracts be automatically terminated? Do I have to continue fulfilling the contracts even if I am no longer financially able to do so? Are there ways to maintain or negotiate my contracts despite bankruptcy?
I am concerned that bankruptcy could further worsen my financial situation if I suddenly find myself without important contracts. Therefore, I am seeking your help and advice to understand how bankruptcy will affect my current contracts and what steps I can take to secure them.
Thank you in advance for your support.
Sincerely,
Emma Eder
Dear Ms. Eder,
I understand your concerns and would like to help you by answering your questions regarding insolvency and ongoing contracts.
In the event of insolvency, your ongoing contracts may be treated differently depending on the type of contract and the specific circumstances of your insolvency. In general, insolvency does not automatically lead to the termination of your contracts.
Rental agreements: In the event of insolvency, you are usually required to continue fulfilling your rental agreement, even if you are not financially capable of doing so. However, the landlord has the option to submit the rental claims within the insolvency proceedings and may potentially be paid from the insolvency estate.
Mobile phone contracts: Mobile phone contracts may be terminated in the event of insolvency, depending on the specific contract terms. It is advisable to speak with the provider and find a solution to potentially adjust the contract.
Insurance contracts: Insurance contracts are usually not affected by insolvency and must continue to be fulfilled. It is important to inform the insurance company about your insolvency to ensure that your insurance coverage remains in place.
Contracts with suppliers: It is also important to communicate with suppliers and potentially negotiate changes to the contracts. In the event of insolvency, contracts with suppliers may continue if it is in the interest of all parties involved.
Therefore, there are ways to maintain or negotiate your contracts despite insolvency. It is advisable to speak with your contract partners early on and find solutions together. In the insolvency proceedings, arrangements can also be made to secure ongoing contracts.
I strongly recommend that you seek advice from a specialist lawyer in insolvency law to discuss your individual situation and plan concrete steps. Early advice can help you secure your contracts and manage your financial situation as best as possible.
I hope this information is helpful to you and I am available for any further questions.
Best regards,
Helma Beck
Attorney specializing in insolvency law
