Reorganization and Insolvency

Open up perspectives

Develop opportunities

We accompany all parties involved in crisis and insolvency, i.e. private individuals, business managers, shareholders, debtors and creditors.

Taking advantage of opportunities is our task. Opportunities are often not immediately recognizable as such. They usually have to be opened up. We also see our task in providing you with a well-founded overview.

Clarification of the economic, legal and personal situation opens up new perspectives. Together with you, we analyze your situation, develop new strategies or examine and accompany you in restructuring and reorganization concepts.

We are at your side


Restructuring means using a crisis as an opportunity. We first analyze and structure the legal, economic and, if necessary, personal circumstances.

The reorganization of companies and individuals as well as negotiations with creditors are part of our field of activity. We advise on the liability of managing directors and board members, on avoidance in insolvency and on criminal insolvency law.

Financial restart


Every application for the opening of insolvency proceedings is preceded by an examination of whether a reorganization through a settlement with the creditors can succeed.

We accompany you through the preliminary proceedings and during the filing for private insolvency as well as during the preparation and filing for corporate insolvency.

The spectrum in insolvency law covers everything from the preparation of insolvency applications to the appointment as insolvency administrator and trustee.

In particular, our tasks also include insolvencies of estates and liquidation of companies without management in the context of emergency management, management and liquidation as an interface of insolvency, corporate and inheritance law.

We provide you with answers


If it is not possible to pay the debts due, or if the debts are much higher than the assets, there are two options for settlement: Either we come to an agreement with the creditors and conclude a so-called settlement. A partial or installment payment is conceivable. If this is not possible - a settlement always requires mutual agreement - we can always file a petition, after which you start over from scratch - i.e. file a so-called insolvency petition. 

If you want to file for personal insolvency, you cannot do it alone. The prerequisite is an attempt to come to an agreement with the creditors. This out-of-court debt settlement attempt must be carried out by an authorized body in accordance with Section 305 of the Insolvency Code. These are lawyers. In some municipalities or district offices, the debt counseling offices also have this authorization, but the processing there is often associated with longer waiting times.

Provided that the majority of creditors agree with the proposal and this majority also includes the greater part of the total claims, the other creditors can be outvoted. Otherwise, this means that the way is clear for insolvency.

Everyone should be helped: The over-indebted citizen, the creditors and the state. No one has anything to gain if a citizen can no longer pay off his mountain of debt. The over-indebted citizen has no economic perspective. The creditors have high effort and costs with their mostly unsuccessful enforcement attempts. The state misses out on income taxes - an over-indebted citizen rarely becomes a good taxpayer. The new start should give the individual citizen a financial perspective again. Existing assets are distributed fairly to creditors by the insolvency administrator and the state gets back a motivated taxpayer.

The duration from the opening of insolvency proceedings to the granting of residual debt discharge is always 3 years.

Actually, it is part of a complete application to state all creditors. However, this only leads to the refusal of residual debt discharge if the creditors have not been stated intentionally or through gross negligence. In case of doubt, it is better to list too many creditors than too few.  

Yes, but the contractual partners are not obliged to conclude contracts with you. Negative Schufa entries are not deleted as soon as the insolvency proceedings are opened, but no later than three years after the granting of residual debt discharge. 

Yes. A cheap and necessary car is not included in the insolvency estate. An expensive car represents an asset and falls to the insolvency estate when the insolvency proceedings are opened. If you buy a more expensive car during the good conduct phase, neither the insolvency administrator nor the creditors may demand that you hand it over. The good conduct phase usually comes into effect approximately six months after the opening of the proceedings.

The part of the income that cannot be garnished. The exact amount is regulated in the garnishment exemption limit table pursuant to Section 850c of the German Code of Civil Procedure. Without maintenance obligations, the limit is 1,260 euros net. The limit increases with each maintenance obligation; however, you may also keep a portion of the amount above this limit.

No. Insolvency is a highly personal matter. The spouse's assets or income are not affected.

Above all, it is important to inform the insolvency administrator immediately if your address or employer changes. 

In a garnishment protection account, a basic amount is protected against account garnishment. This is to ensure that the current necessary payments, such as rent, electricity, etc. can be made even if the account is seized.

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Rechtsanwälte Juliane Lidl-Böck und Alexander Barauke