(1) Proceedings relating to the request to open insolvency proceedings are suspended until the decision is taken on the plan for the settlement of debts. This period is, as a rule, not to exceed three months. After hearing the debtor, the court orders the continuation of the proceedings regarding the request to open proceedings if, in accordance with its freely-formed conviction, the debt settlement plan is likely not to be accepted.
(2) Subsection (1) poses no obstacle to the ordering of safeguards. If the proceedings are suspended, the debtor is, within two weeks of being called on to do so by the court, to submit the number of duplicates of the debt settlement plan and of the record of assets required for service. Section 305 (3) sentence 2 applies accordingly.
(3) If a creditor requests the opening of proceedings, then prior to giving a decision on the opening of proceedings the insolvency court is to give the debtor the opportunity to likewise file a request. If the debtor files a request, subsection (1) also applies to the creditor’s request. In this case, the debtor is initially to attempt to reach an out-of-court agreement in accordance with section 305 (1) no. 1.