What are the consequences if I do not declare my insolvency?
May 25, 2023 | 40,00 EUR | answered by Erwin Hausdorf
Dear Sir or Madam,
My name is Hanna Hoffmann and I am currently facing a very difficult situation. After my company ran into financial difficulties due to the Corona pandemic, I find myself forced to file for insolvency. However, I have great concerns and uncertainties regarding the possible consequences if I do not declare insolvency.
Currently, my company is in a severe liquidity crisis and I see no way to meet our ongoing liabilities. Revenues have plummeted sharply and costs far exceed our income. I have tried everything to improve the situation, but I have not found a solution that is sustainable in the long term.
My biggest worry is that I could be held personally liable if I do not declare insolvency in a timely manner. I fear consequences for my financial situation, my reputation, and my future prospects. Therefore, I wonder what the consequences could be if I do not report insolvency and how I can protect myself from them.
I therefore request comprehensive information and possible solutions to best handle the situation. Thank you in advance for your support and I look forward to your response.
Yours sincerely,
Hanna Hoffmann
Dear Mrs. Hoffmann,
Thank you for your inquiry and your trust in my expertise in insolvency law. I am sorry to hear that your company has run into financial difficulties due to the current COVID-19 pandemic. It is understandable that you are concerned about the possible consequences if you do not file for insolvency in time. In such situations, it is important to seek professional advice early on to find the best possible solution.
If you do not file for insolvency in time, this can have serious consequences. On the one hand, you could be held personally liable if creditors suffer losses. This could lead to financial burdens and significantly impact your personal situation. Additionally, this could also negatively affect your reputation and future prospects. Therefore, it is important to file for insolvency early on to protect yourself from harm.
To protect yourself as best as possible, I strongly recommend filing for insolvency promptly. This shows that you had no intention of causing harm to your creditors, but that you take the situation seriously and are looking for a solution. By filing for insolvency, you can create orderly conditions and avoid prolonging insolvency.
Furthermore, by filing for insolvency early on, you may also reduce personal liability risks. By seeking professional assistance from an insolvency lawyer, you can better understand your rights and obligations and act accordingly. A lawyer can help you navigate insolvency and protect you from unpleasant consequences.
Overall, it is advisable to file for insolvency early on and seek professional help to manage the situation as effectively as possible. I am of course available to answer your questions and support you during this difficult time.
Best regards,
Erwin Hausdorf
