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Part 9 · Discharge of residual debt › Section 301

Effect of discharge of residual debt

(1) If discharge of residual debt is granted, it becomes binding on all the insolvency creditors. Such binding effect also applies to those creditors who have not filed their claims.

(2) The rights of the insolvency creditors against the debtor’s co-obligors and guarantors and their rights deriving from a registered priority notice securing them or from a right entitling them to separate satisfaction in insolvency proceedings remain unaffected by the discharge of residual debt. Debtors are, however, discharged of the claims of co-obligors, guarantors or any other redressing party against themselves in the same way as they are discharged of the claims of the insolvency creditors.

(3) Creditors without entitlement to satisfaction under discharge of residual debt who are satisfied are not held liable to restitution.

(4) A ban on commencing or engaging in a commercial or business activity, a trade or self-employment which was issued solely on account of the debtor’s insolvency ceases to be effective upon the discharge of residual debt having legal effect. Sentence 1 does not apply to the refusal and the revocation of admission to any activity which is subject to licensing.

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