German law · English information
Creditors need to determine the nature of their claims, the correct procedure and possible recovery outside an ordinary insolvency dividend.
Lodging a claim
Identify the amount, legal basis and supporting documents. Distinguish ordinary insolvency claims from estate liabilities and secured rights. Claims are generally lodged with the administrator or, in debtor-in-possession proceedings, the supervisor, following the court’s directions.
Disputed claims
Check who disputes the claim, whether an enforceable title already exists and who must pursue determination. Pending litigation may be stayed. Resuming proceedings and obtaining recognition in the insolvency schedule follow special rules.
Participation and additional recovery
Creditors‘ meetings and committees perform different functions. A plan requires review of voting rights, class formation and economic comparisons. Late filing may cause extra costs or disadvantages. Security, ownership rights, set-off, guarantees and credit insurance may offer additional recovery; possible clawback exposure also needs assessment.
Related information
Procedures overview · Creditor rights · Corporate insolvency
Official German Insolvency Code · Official StaRUG
Practical implementation
Prepare the claim and security separately
A claim filing should identify the amount, legal basis and supporting evidence clearly. Principal, interest and costs need separate treatment. Judgments, assignments and part-payments belong in the record. Retention of title, liens and other security should not be overlooked merely because an ordinary claim is being filed. The correct debtor and potential claims against additional obligors also require review. A guarantee may provide another route, subject to its own conditions and limits.
Remain involved after filing
Creditor participation does not end with a form. Verification results, objections, reports and proposed transactions may require action. A plan needs assessment of recovery, funding, classes and the alternative scenario. Rights in meetings or committees depend on the role held. Further action should reflect value, evidence, costs and realistic prospects. A judgment against the debtor does not guarantee full payment from the estate, and the nominal claim should not be confused with an expected distribution.
Four practical examples
The following scenarios are illustrative examples, not reports of client matters. The outcome depends on the facts and applicable rules.
Example 1: A supplier holds a judgment
The debtor enters insolvency after a final judgment. The creditor still needs to address claim filing. Amount, interest and costs should be calculated for the relevant date. An existing title may affect how a subsequent objection must be pursued.
Example 2: Goods remain at the customer
Unpaid identifiable goods were supplied with retention of title. Ownership, return and realisation rights need examination alongside the monetary claim. Delivery records, contractual terms and stock identification should be preserved promptly.
Example 3: Part of the claim is disputed
The administrator alleges defects and accepts only part of the claim. Delivery, acceptance, complaints and counterclaims need evidence. Depending on value and prospects, the response may involve further documents, settlement or litigation to establish the claim.
Example 4: A plan offers one payment
A creditor is asked to accept a substantial reduction. Funding, security, timing and the alternative without the plan should be compared. A higher headline percentage may offer less value if payment depends on uncertain finance.
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Tell us your role, the parties involved and any deadlines. We will check conflicts, agree the scope of the work and explain the fees before accepting instructions.