Undue Delay in Filing for Insolvency

If a company faces financial difficulties and is threatened with insolvency due to existing illiquidity or over-indebtedness, decisive steps must be taken. If insolvency must be filed, but the company fails to submit the corresponding application, the offense of delaying insolvency quickly arises. Entrepreneurs must exercise caution here, as delaying insolvency is a criminal offense and can be punished with up to three years imprisonment.

Delaying insolvency is part of white-collar crime. The offense of delaying insolvency according to Section 15a of the Insolvency Code (InsO) is met, for example, if the managing director of a GmbH (and, under certain circumstances, shareholders) fails to file for insolvency and submit a proper insolvency application within 3 weeks when grounds for insolvency exist. This deadline also applies if restructuring is intended.

For entrepreneurs or managing directors, it is crucial to understand the legal situation and applicable statutory provisions and to act promptly, also to protect themselves from criminal consequences.

We provide comprehensive and fact-based advice. As an entrepreneur, contact us for expert advice on the state of your company, and we will clarify the next steps in the event of insolvency, helping to avoid criminal consequences.

• Is your company experiencing financial difficulties?
• Is the survival of your company threatened?
• Is your company over-indebted, or is it facing imminent insolvency?
• Are you already attempting to sustain your company using funds from your personal assets?
• Have criminal proceedings for delayed insolvency filing already been initiated against you?

Process and Support

• Initial consultation with discussion of further actions
• Discussion of potential criminal liability due to excessive delay, in cases where the company has been in crisis for an extended period
• Discussion of potential criminal liability arising from merely negligent unawareness of over-indebtedness, impending insolvency, or actual insolvency.
• If an investigation has already been initiated against you: Access to files at the public prosecutor's office
• In-depth consultation phase after reviewing the files, with the definition of objectives.

Goals and Prospects of Success

• Prevention of criminal acts
• Reduction of the risk of personal liability in both criminal and financial terms
• Preservation of existence through timely and prudent action
• If criminal proceedings have already been initiated against you: Avoidance of a main hearing through dismissal during the investigation phase or following an agreement on a penal order.
• Sentence reduction

Time Commitment and Duration of Proceedings

• The duration of the proceedings is largely determined by your cooperation
• If criminal proceedings have already been initiated against you: The duration of the criminal proceedings is primarily determined by the investigating authorities and the court
• Agreement on a penal order, dismissal of proceedings, or a "deal" with the public prosecutor's office, usually after a few weeks.

Costs and Fees

• Initial consultation in straightforward cases is available for Euro 190.00 plus statutory value-added tax
• For drafting and reviewing correspondence, we offer billing based on time spent or flat-rate agreements.
• For legal representation in court, fees are at least charged according to the Lawyers' Remuneration Act. However, in most cases, billing based on time spent or a flat-rate agreement is also advisable here.