What costs arise from insolvency proceedings?
March 1, 2022 | 30,00 EUR | answered by Katja Winterberg
Dear lawyer,
I am reaching out to you as I am currently in a difficult financial situation and considering whether bankruptcy proceedings could be a solution for me. My name is Tobias König and I am self-employed as a craftsman. Due to some contract cancellations and unexpected costs, I have accumulated high debts and am unable to pay my bills.
I am concerned about the costs that could arise from a bankruptcy proceeding. What fees and expenses must I, as the debtor, bear? Are there ways to reduce or avoid these costs? I have also heard that there are different types of bankruptcy proceedings - which would be best suited for my situation?
It is important to me that I am well informed before making a decision that will impact my financial future. I hope you can help me get an overview of the costs of a bankruptcy proceeding and suggest potential solutions. Thank you in advance for your support.
Sincerely,
Tobias König
Dear Mr. King,
Thank you for your inquiry regarding insolvency proceedings. It is understandable that you are in a difficult financial situation and would like to gather information about the costs and options of insolvency proceedings. I am happy to provide you with detailed information on this matter.
First and foremost, I would like to emphasize that insolvency proceedings are a way for debtors to free themselves from their debts and start fresh financially. The costs of insolvency proceedings consist of various components, including court fees for the insolvency proceedings, costs for the insolvency administrator, as well as expenses for the preparation of the insolvency plan and procedural costs.
The exact costs may vary depending on the type of insolvency proceedings. There are generally two types of insolvency proceedings: regular insolvency and consumer insolvency. As a self-employed craftsman, you may consider regular insolvency. Regular insolvency is a more complex process that typically incurs higher costs, as an insolvency administrator is appointed and a comprehensive creditors' meeting takes place.
Consumer insolvency, on the other hand, is more suitable for individuals with lower income and assets. In this case, there is the possibility to reduce or avoid procedural costs by applying for legal aid or arranging a payment plan for the procedural costs.
It is important that you seek advice from a specialist lawyer in insolvency law to find the best solution for you. An experienced lawyer can help you realistically assess the costs of insolvency proceedings and show you possible ways to minimize the financial burdens.
In conclusion, I recommend seeking professional advice early on and clarifying all your open questions with a lawyer. Only through informed advice can you make a decision that will positively impact your financial future.
I hope this information is helpful to you and I am available for any further questions you may have.
Sincerely,
Katja Winterberg
Lawyer specializing in insolvency law
