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InsO (EN)

Insolvency Code
InsO-EN · official text on Gesetze im Internet — official English translation

🇩🇪 Auf Deutsch lesen (original text)

This is the German Federal Ministry of Justice's own official English translation, by Ute Reusch. The German original linked above is the legally authoritative text.

Sections

Part 1 General provisions

• Section 1 — Objectives of insolvency proceedings
• Section 2 — Jurisdiction of local court as insolvency court
• Section 3 — Local jurisdiction
• Section 3a — Group jurisdiction
• Section 3b — Continuance of group jurisdiction
• Section 3c — Jurisdiction for group ancillary proceedings
• Section 3d — Referral to court with group jurisdiction
• Section 3e — Group of companies
• Section 4 — Applicability of Code of Civil Procedure
• Section 4a — Deferment of costs of insolvency proceedings
• Section 4b — Repayment and adjustment of deferred amounts
• Section 4c — Rescission of deferment
• Section 4d — Legal recourse
• Section 5 — Principles of insolvency proceedings
• Section 6 — Immediate appeal
• Section 7
• Section 8 — Service
• Section 9 — Publication
• Section 10 — Hearing of debtor
• Section 10a — Preliminary meeting

Part 2 Opening of insolvency proceedings. Recognised assets and parties to proceedings

Division 1 Conditions and procedure for opening of proceedings

• Section 11 — Admissibility of insolvency proceedings
• Section 12 — Legal entities under public law
• Section 13 — Request to open insolvency proceedings
• Section 13a — Request to establish group jurisdiction
• Section 14 — Request by creditor
• Section 15 — Right of request in case of legal entities and associations without legal personality
• Section 15a — Obligation to request in case of legal entities and associations without legal personality
• Section 15b — Payments in event of insolvency and overindebtedness; period of limitation
• Section 16 — Reason to open insolvency proceedings
• Section 17 — Insolvency
• Section 18 — Imminent insolvency
• Section 19 — Overindebtedness
• Section 20 — Disclosure and cooperation requirements during opening proceedings. Reference to discharge of residual debt
• Section 21 — Decisions ordering provisional measures
• Section 22 — Legal status of provisional insolvency administrator
• Section 22a — Appointment of provisional creditors’ committee
• Section 23 — Publication of restriction on property transfers
• Section 24 — Effects of restrictions on property transfers
• Section 25 — Repeal of preservation measures
• Section 26 — Refusal for insufficiency of assets
• Section 26a — Provisional insolvency administrator’s remuneration
• Section 27 — Order opening insolvency proceedings
• Section 28 — Requirements incumbent on creditors and debtors
• Section 29 — Docketing of meetings
• Section 30 — Publication of order opening insolvency proceedings
• Section 31 — Commercial Register, Register of Cooperatives, Register of Partnerships and Register of Associations
• Section 32 — Land register
• Section 33 — Ship/aircraft register
• Section 34 — Appeal

Division 2 Insolvency estate. Classification of creditors

• Section 35 — Definition of insolvency estate
• Section 36 — Objects not subject to attachment
• Section 37 — Joint marital property of community of property
• Section 38 — Definition of insolvency creditors
• Section 39 — Lower-ranking insolvency creditors
• Section 40 — Claims to maintenance
• Section 41 — Immature claims
• Section 42 — Claims subject to resolutory condition
• Section 43 — Liability incumbent on several persons
• Section 44 — Rights of joint and several debtors and of guarantors
• Section 44a — Secured loans
• Section 45 — Conversion of claims
• Section 46 — Recurring payments
• Section 47 — Right to separation
• Section 48 — Right to separation extending to consideration received as substitute for object of separation
• Section 49 — Separate satisfaction from immovables
• Section 50 — Separate satisfaction of pledgees
• Section 51 — Other creditors with claim to separate satisfaction
• Section 52 — Elimination of creditors with right to separate satisfaction
• Section 53 — Preferential creditors
• Section 54 — Costs of insolvency proceedings
• Section 55 — Other debts incumbent on estate

Division 3 Insolvency administrator. Bodies representing creditors

• Section 56 — Appointment of insolvency administrator
• Section 56a — Creditor’s involvement in appointment of administrator
• Section 56b — Appointment of administrator for debtors in same group of companies
• Section 57 — Election of different insolvency administrator
• Section 58 — Supervision by insolvency court
• Section 59 — Dismissal of insolvency administrator
• Section 60 — Liability of insolvency administrator
• Section 61 — Non-performance of debts incumbent on estate
• Section 62 — Period of limitation
• Section 63 — Remuneration of insolvency administrator
• Section 64 — Determination by insolvency court
• Section 65 — Authorisation to issue statutory instrument
• Section 66 — Rendering of accounts
• Section 67 — Establishment of creditors’ committee
• Section 68 — Election of different members
• Section 69 — Duties incumbent on creditors’ committee
• Section 70 — Dismissal
• Section 71 — Liability of members of creditors’ committee
• Section 72 — Decisions of creditors’ committee
• Section 73 — Remuneration of members of creditors’ committee
• Section 74 — Convening creditors’ assembly
• Section 75 — Request to convene creditors’ assembly
• Section 76 — Decisions by creditors’ assembly
• Section 77 — Determination of voting right
• Section 78 — Repeal of decision taken by creditors’ assembly
• Section 79 — Provision of information to creditors’ assembly

Part 3 Effects of opening insolvency proceedings

Division 1 General effects

• Section 80 — Right to manage and transfer insolvency estate vested in insolvency administrator
• Section 81 — Disposals by debtor
• Section 82 — Performance in favour of debtor
• Section 83 — Deceased’s estate. Continued community
• Section 84 — Liquidation of company or community
• Section 85 — Joinder of pending actions as plaintiff
• Section 86 — Joinder of certain pending actions as defendant
• Section 87 — Claims held by insolvency creditors
• Section 88 — Execution prior to opening of insolvency proceedings
• Section 89 — Prohibition of execution
• Section 90 — Prohibition of execution under debts incumbent on estate
• Section 91 — Exclusion of other acquisition of rights
• Section 92 — General damage
• Section 93 — Personal liability of partners
• Section 94 — Preservation of right to set off claim
• Section 95 — Acquisition of right to set off claim during proceedings
• Section 96 — Prohibition of set-off
• Section 97 — Debtor’s disclosure and cooperation requirements
• Section 98 — Imposition of duties of debtor
• Section 99 — Interception of debtor’s mail
• Section 100 — Maintenance payments using insolvency estate
• Section 101 — Members of body representing debtor. Employees
• Section 102 — Restriction of basic right

Division 2 Performance of transactions. Cooperation of works council

• Section 103 — Option to be exercised by insolvency administrator
• Section 104 — Fixed-date transactions, financial services, contractual liquidation netting
• Section 105 — Severable contracts
• Section 106 — Priority notice
• Section 107 — Retention of title
• Section 108 — Continuity of certain continuous obligations
• Section 109 — Debtor’s status as tenant or lessee
• Section 110 — Debtor’s status as landlord or lessor
• Section 111 — Sale of property let by debtor
• Section 112 — Prohibition of termination of tenancy or lease contracts
• Section 113 — Termination of employment
• Section 114
• Section 115 — Expiry of mandates
• Section 116 — Expiry of management contracts
• Section 117 — Expiry of proxies
• Section 118 — Liquidation of companies
• Section 119 — Invalidity of deviating agreements
• Section 120 — Termination of works agreements
• Section 121 — Operational changes and conciliatory proceedings
• Section 122 — Judicial approval of operational changes
• Section 123 — Scope of social plan
• Section 124 — Social plan established prior to opening of insolvency proceedings
• Section 125 — Reconciliation of interests and dismissals protection
• Section 126 — Judicial orders deciding on dismissal protection
• Section 127 — Action brought by employee
• Section 128 — Sale of enterprise

Division 3 Contest of debtor’s transactions in insolvency proceedings

• Section 129 — Principle
• Section 130 — Congruent coverage
• Section 131 — Incongruent coverage
• Section 132 — Transactions directly disadvantaging insolvency creditors
• Section 133 — Wilful disadvantage
• Section 134 — Gratuitous benefit
• Section 135 — Loans replacing equity capital
• Section 136 — Silent partnership
• Section 137 — Payments on bills of exchange and cheques
• Section 138 — Persons with close relationship to debtor
• Section 139 — Calculation of time periods prior to request to open insolvency proceedings
• Section 140 — Date of performance of transaction
• Section 141 — Executable deed
• Section 142 — Cash transactions
• Section 143 — Legal consequences
• Section 144 — Claims of party to contested transaction
• Section 145 — Transactions contested and enforced against legal successors
• Section 146 — Limitation of right to contest
• Section 147 — Transactions carried out subsequent to opening of insolvency proceedings

Part 4 Management and disposal of insolvency estate

Division 1 Preservation of insolvency estate

• Section 148 — Transfer of insolvency estate
• Section 149 — Objects of value
• Section 150 — Sealing
• Section 151 — Record of insolvency estate
• Section 152 — Record of creditors
• Section 153 — Survey of property
• Section 154 — Deposit with registry of insolvency court
• Section 155 — Accounting under commercial and fiscal laws

Division 2 Decision on realisation

• Section 156 — Report meeting
• Section 157 — Decision on further proceedings
• Section 158 — Measures taken prior to decision
• Section 159 — Realisation of insolvency estate
• Section 160 — Transactions of particular importance
• Section 161 — Provisional prohibition of transaction
• Section 162 — Sale of enterprise to persons with specific interests
• Section 163 — Sale of enterprise below value
• Section 164 — Legal validity of transaction

Division 3 Objects subject to right to separate satisfaction

• Section 165 — Realisation of immovables
• Section 166 — Realisation of movables
• Section 167 — Notification of creditor
• Section 168 — Notification of envisaged sale
• Section 169 — Protection of creditor against delayed disposal
• Section 170 — Distribution of proceeds
• Section 171 — Calculation of contribution to costs
• Section 172 — Other use of movables
• Section 173 — Realisation by creditor

Part 5 Satisfaction of insolvency creditors. Discontinuation of proceedings

Division 1 Determination of claims

• Section 174 — Filing of claims
• Section 175 — Schedule
• Section 176 — Procedure for verification meeting
• Section 177 — Subsequent filings
• Section 178 — Prerequisites and effects of determination of claims
• Section 179 — Contested claims
• Section 180 — Competence for determination of claims
• Section 181 — Scope of determination
• Section 182 — Value of action
• Section 183 — Effect of decision
• Section 184 — Action to enforce claim contested by debtor
• Section 185 — Special jurisdiction
• Section 186 — Restitutio in integrum

Division 2 Distribution

• Section 187 — Satisfaction of insolvency creditors
• Section 188 — Distribution record
• Section 189 — Consideration of contested claims
• Section 190 — Consideration of creditors with right to separate satisfaction
• Section 191 — Consideration of claims subject to condition precedent
• Section 192 — Subsequent consideration
• Section 193 — Amendments to distribution record
• Section 194 — Objections to distribution record
• Section 195 — Determination of fraction
• Section 196 — Final distribution
• Section 197 — Final meeting
• Section 198 — Deposit of retained funds
• Section 199 — Surplus resulting from final distribution
• Section 200 — Termination of insolvency proceedings
• Section 201 — Rights of insolvency creditors subsequent to termination
• Section 202 — Jurisdiction for execution
• Section 203 — Order to carry out delayed distribution
• Section 204 — Appeal
• Section 205 — Implementation of delayed distribution
• Section 206 — Exclusion of preferential creditors

Division 3 Discontinuation of insolvency proceedings

• Section 207 — Discontinuation for insufficiency of assets
• Section 208 — Notification of insufficiency of assets
• Section 209 — Satisfaction of preferential creditors
• Section 210 — Prohibition of execution
• Section 210a — Insolvency plan in case of insufficient assets
• Section 211 — Discontinuation upon notification of insufficiency of assets
• Section 212 — Discontinuation for subsequent lack of grounds to open insolvency proceedings
• Section 213 — Discontinuation with creditors’ consent
• Section 214 — Discontinuation procedure
• Section 215 — Publication and legal effects of discontinuation
• Section 216 — Appeal

Part 6 Insolvency plan

Division 1 Establishment of plan

• Section 217 — Principle
• Section 218 — Submission of insolvency plan
• Section 219 — Breakdown of plan
• Section 220 — Declaratory part
• Section 221 — Constructive part
• Section 222 — Formation of groups
• Section 223 — Rights of creditors entitled to separate satisfaction
• Section 223a — Intra-group third-party guarantees
• Section 224 — Rights of insolvency creditors
• Section 225 — Rights of lower-ranking insolvency creditors
• Section 225a — Rights of shareholders
• Section 226 — Equal treatment of parties
• Section 227 — Debtor’s liability
• Section 228 — Modification of conditions under property law
• Section 229 — Survey of assets. Earnings and finance plan
• Section 230 — Further attachments
• Section 231 — Refusal of plan
• Section 232 — Comments on plan
• Section 233 — Suspension of realisation and distribution
• Section 234 — Laying out of plan

Division 2 Acceptance and approval of plan

• Section 235 — Discussion and voting meeting
• Section 236 — Coincidence with verification meeting
• Section 237 — Voting right of insolvency creditors
• Section 238 — Voting right of creditors entitled to separate satisfaction
• Section 238a — Voting right of shareholders
• Section 238b — Voting right of those entitled as result of intra-group third-party guarantees
• Section 239 — Voting list
• Section 240 — Modification of plan
• Section 241 — Separate voting meeting
• Section 242 — Voting in writing
• Section 243 — Voting by groups
• Section 244 — Necessary majorities
• Section 245 — Prohibition of obstruction
• Section 245a — Natural persons placed at disadvantage
• Section 246 — Consent of lower-ranking creditors of insolvency proceedings
• Section 246a — Consent of shareholders
• Section 247 — Debtor’s consent
• Section 248 — Approval by court
• Section 248a — Court approval of corrections to plan
• Section 249 — Plan subject to conditions
• Section 250 — Contravention of procedural provisions
• Section 251 — Protection of minorities
• Section 252 — Publication of decision
• Section 253 — Appeal

Division 3 Effects of approved plan. Monitoring implementation of plan

• Section 254 — General effects of plan
• Section 254a — Rights in objects. Other effects
• Section 254b — Effects for all involved
• Section 255 — Proviso of revival
• Section 256 — Contested claims. Remaining claims
• Section 257 — Execution under plan
• Section 258 — Termination of insolvency proceedings
• Section 259 — Effects of termination
• Section 259a — Protection against unfair judicial execution
• Section 259b — Special period of limitation
• Section 260 — Monitoring implementation of plan
• Section 261 — Tasks and rights of insolvency administrator
• Section 262 — Disclosure requirement incumbent on insolvency administrator
• Section 263 — Transactions requiring consent
• Section 264 — Loan ceiling
• Section 265 — Lower-ranking status of new creditors
• Section 266 — Consideration of lower-ranking status
• Section 267 — Publication of monitoring
• Section 268 — Termination of monitoring
• Section 269 — Costs of monitoring

Part 7 Coordination of proceedings concerning debtors which are members of same group of companies

Division 1 General provisions

• Section 269a — Cooperation between insolvency administrators
• Section 269b — Cooperation between courts
• Section 269c — Cooperation between creditors’ committees

Division 2 Coordination proceedings

• Section 269d — Coordination court
• Section 269e — Coordinator
• Section 269f — Coordinatorʼs tasks and legal status
• Section 269g — Coordinatorʼs remuneration
• Section 269h — Coordination plan
• Section 269i — Deviations from coordination plan

Part 8 Debtor-in-possession management

• Section 270 — Principle
• Section 270a — Request; debtor-in-possession management plan
• Section 270b — Order for provisional debtor-in-possession management
• Section 270c — Procedure for provisional debtor-in-possession management
• Section 270d — Preparations for restructuring; “protective shield”
• Section 270e — Termination of provisional debtor-in-possession management
• Section 270f — Order for debtor-in-possession management
• Section 270g — Debtor-in-possession management in respect of debtor companies in group of companies
• Section 271 — Subsequent order
• Section 272 — Repeal of order
• Section 273 — Publication
• Section 274 — Legal status of insolvency monitor
• Section 275 — Consent of insolvency monitor
• Section 276 — Consent of creditors’ committee
• Section 276a — Involvement of supervisory organs
• Section 277 — Ordering requirement of consent
• Section 278 — Funds for debtor’s livelihood
• Section 279 — Mutual contracts
• Section 280 — Liability. Contest of debtor’s transactions in insolvency proceedings
• Section 281 — Notification of creditors
• Section 282 — Realisation of securities
• Section 283 — Satisfaction of insolvency creditors
• Section 284 — Insolvency plan
• Section 285 — Insufficiency of assets

Part 9 Discharge of residual debt

• Section 286 — Principle
• Section 287 — Debtor’s request
• Section 287a — Decision of insolvency court
• Section 287b — Debtor’s obligation to engage in gainful employment
• Section 288 — Designation of trustee
• Section 289 — Discontinuance of insolvency proceedings
• Section 290 — Refusal of discharge of residual debt
• Section 291
• Section 292 — Legal status of trustee
• Section 293 — Trustee’s remuneration
• Section 294 — Equal treatment of creditors
• Section 295 — Debtor’s obligations
• Section 295a — Debtor’s obligations in case of self-employment
• Section 296 — Contravention of obligations
• Section 297 — Insolvency offences
• Section 297a — Reasons for refusal becoming subsequently known
• Section 298 — Coverage of trustee’s minimum remuneration
• Section 299 — Expiry before date
• Section 300 — Decision on discharge of residual debt
• Section 300a — New acquisition during ongoing insolvency proceedings
• Section 301 — Effect of discharge of residual debt
• Section 302 — Excepted claims
• Section 303 — Retraction of discharge of residual debt
• Section 303a — Entry in list of debtors

Part 10 Consumer insolvency proceedings

• Section 304 — Principle
• Section 305 — Debtor’s request to open insolvency proceedings
• Section 305a — Failure of out-of-court debt settlement
• Section 306 — Suspension of proceedings
• Section 307 — Service on creditors
• Section 308 — Acceptance of plan for settlement of debts
• Section 309 — Replacement of approval
• Section 310 — Costs
• Section 311 — Initiation of proceedings concerning opening of insolvency proceedings
• Section 312
• Section 313
• Section 314

Part 11 Special types of insolvency proceedings

Division 1 Probate insolvency proceedings

• Section 315 — Local jurisdiction
• Section 316 — Admissibility of opening of insolvency proceedings
• Section 317 — Persons entitled to request opening of proceedings
• Section 318 — Entitlement to make request for joint marital property
• Section 319 — Submission deadline
• Section 320 — Reasons for opening
• Section 321 — Execution following succession
• Section 322 — Contestable transactions on part of heir
• Section 323 — Heir’s expenses
• Section 324 — Debts incumbent on estate
• Section 325 — Obligations incumbent on estate
• Section 326 — Heir’s claims
• Section 327 — Lower-ranking obligations
• Section 328 — Restituted objects
• Section 329 — Reversionary succession
• Section 330 — Purchase of deceased’s estate
• Section 331 — Simultaneous insolvency of heir

Division 2 Insolvency proceedings relating to joint marital property of continued community of property

• Section 332 — Referral to insolvency proceedings opened for estate

Division 3 Insolvency proceedings relating to jointly administered marital property of a community

• Section 333 — Right to file request. Grounds for opening proceedings
• Section 334 — Personal liability of spouses

Part 12 International insolvency law

Division 1 General provisions

• Section 335 — Principle
• Section 336 — Contract on immovable
• Section 337 — Employment
• Section 338 — Set-off
• Section 339 — Contesting transactions in insolvency proceedings
• Section 340 — Organised markets. Pension transactions
• Section 341 — Exercising creditor rights
• Section 342 — Return. Imputation

Division 2 Foreign insolvency proceedings

• Section 343 — Recognition
• Section 344 — Preservation measures
• Section 345 — Publication
• Section 346 — Land register
• Section 347 — Proof of appointment of administrator. Notification of court
• Section 348 — Insolvency court with jurisdiction. Cooperation between insolvency courts
• Section 349 — Realisation of immovables
• Section 350 — Performance in debtor’s favour
• Section 351 — Rights in rem
• Section 352 — Interruption and joinder of action
• Section 353 — Enforceability of foreign judgments

Division 3 Territorial insolvency proceedings relating to domestic assets

• Section 354 — Conditions for territorial insolvency proceedings
• Section 355 — Discharge of residual debt. Insolvency plan
• Section 356 — Secondary insolvency proceedings
• Section 357 — Cooperation between insolvency administrators
• Section 358 — Surplus resulting from final distribution

Part 13 Entry into force

• Section 359 — Referral to Introductory Act