How does the process of filing for insolvency proceed?
May 16, 2024 | 40,00 EUR | answered by Helma Beck
Dear Insolvency Lawyer,
I am reaching out to you because I am currently in a difficult financial situation and considering filing for insolvency. My name is Selma Gehrmann and I am a single mother of two children. Due to personal tragedies and a prolonged illness, I have been unable to pay off my debts and now find myself compelled to file for insolvency.
However, I am unsure of the exact procedure for filing for insolvency and what steps I need to take. I am also very concerned about the future of my children and wonder how the insolvency will affect them. I want to make sure that they continue to be well taken care of and that my financial situation does not disadvantage them.
Therefore, it would be very helpful if you could explain to me in detail how the insolvency filing process works and what documents and information I need for it. Are there any deadlines I need to be aware of, and what are the implications of insolvency on my assets and ongoing liabilities? I am also interested in knowing how long the process typically takes and what possible solutions there are to settle my debts.
I thank you in advance for your support and look forward to hearing from you.
Best regards,
Selma Gehrmann
Dear Mrs. Gehrmann,
Thank you for trusting in my expertise as a lawyer specializing in insolvency law. I am sorry to hear that you are in a difficult financial situation and are considering filing for bankruptcy. I am happy to assist you and explain in detail how the insolvency filing process works and what steps you need to take.
Firstly, it is important to know that the insolvency filing in Germany is a regulated procedure that aims to organize the financial situation of a debtor and ensure a fair distribution of assets to creditors. If you wish to file for bankruptcy, you must submit an application to the competent insolvency court. In this application, you will provide information about your financial situation, assets, and debts.
For the insolvency filing, you will need various documents, such as an overview of your income and expenses, a list of your creditors and outstanding debts, as well as evidence of your assets. It is important that you provide all relevant information completely and truthfully, as false information can have legal consequences.
There are no fixed deadlines for filing for insolvency, but the sooner you submit the application, the sooner you can free yourself from the financial crisis. After filing the application, an insolvency administrator will be appointed to manage your assets and inform the creditors.
Insolvency will affect your assets and ongoing liabilities. Your assets will be liquidated to satisfy the creditors, and you must adhere to certain rules and budgets. Ongoing liabilities, such as rent payments or maintenance obligations, must still be fulfilled.
The duration of the insolvency process can vary depending on the complexity and extent of your debts. However, it typically lasts between three and six years. During this time, you have the opportunity to create an out-of-court debt settlement plan or apply for debt discharge to settle your debts.
I understand that you are concerned about the future of your children. Insolvency usually does not have direct effects on children, but it is important that you can continue to provide for their care. There are various government benefits and support options that can help you and your children during this difficult time.
I hope that this information has been helpful to you. If you have any further questions or need assistance with the insolvency filing, please do not hesitate to contact me.
Best regards,
Helma Beck
Lawyer specializing in insolvency law
