What role does the insolvency administrator play in the process?
July 9, 2023 | 40,00 EUR | answered by Emma Fischer
Dear Sir or Madam,
I am reaching out to you as I urgently need information on insolvency law. My name is Wolfgang Lauer and I am currently facing the challenge of having to deal with my insolvency.
The situation is as follows: My company is in a precarious financial situation, which led me to file for insolvency. Now an insolvency administrator has been appointed to oversee the proceedings. However, I am unsure of the role this insolvency administrator plays in the entire process and what powers they have.
My concerns mainly lie in not knowing how to interact with the insolvency administrator and what impact their decisions will have on my company and personal situation. Additionally, I am worried about how my creditors and employees may be affected by the decisions of the insolvency administrator.
Therefore, my question to you is: What specific role does the insolvency administrator play in the insolvency proceedings and what powers do they have? How can I as a business owner best prepare and work with the insolvency administrator to navigate the process effectively?
Thank you in advance for your support and expertise.
Sincerely,
Wolfgang Lauer
Dear Mr. Lauer,
Thank you for your inquiry regarding insolvency law. It is understandable that you may feel uncertain in your current situation and have questions about the role of the insolvency administrator. I am happy to explain to you in detail the tasks and powers of an insolvency administrator in the insolvency proceedings.
The insolvency administrator is appointed by the insolvency court and has the task of safeguarding the interests of the creditors and conducting the insolvency proceedings properly. He represents not only the interests of the creditors, but also those of the debtor, in your case, your company. The insolvency administrator takes over the administration of the insolvency assets, verifies the claims of the creditors, negotiates with them, and decides on the distribution of the available assets.
Furthermore, the insolvency administrator has the authority to take measures to restructure the company or liquidate it. He can terminate contracts, sell assets, dismiss employees, and take measures to prevent insolvency. It is important to note that the insolvency administrator must always act within the framework of legal regulations and submit his decisions to the insolvency court for approval.
As a business owner, it is advisable to cooperate with the insolvency administrator and provide him with all necessary information. You should be transparent and cooperative to support the insolvency proceedings as best as possible. It is also recommended to seek legal advice early on to understand your rights and obligations in the insolvency proceedings and minimize potential risks.
It is important to understand that while the insolvency administrator has extensive powers, he is also bound by legal regulations and should act in the interests of all parties involved. With professional cooperation and sound legal advice, you can help manage the insolvency proceedings as effectively as possible.
I hope this information has been helpful to you and I am available for any further questions.
Sincerely,
Emma Fischer, Attorney specializing in insolvency law
