The German Insolvency Code: a practical guide

German law · English information

The Insolvenzordnung (InsO) governs the opening, conduct and conclusion of German insolvency proceedings. This guide links topics to the official legislation rather than reproducing a statute that may become outdated.

Opening and management duties

Sections 13–19 InsO address applications, insolvency grounds and management duties. Interim protective measures are governed particularly by sections 21 onwards. The actual court order determines the powers granted.

Claims, contracts and restructuring

Claims and security, reciprocal contracts, avoidance and claim verification form separate areas. Statutory exceptions, procedural stage and transitional rules matter. Insolvency plans, debtor-in-possession proceedings, consumer cases, discharge and estate insolvency have specific conditions. The pre-insolvency restructuring framework is instead governed by the StaRUG.

Check the relevant version

Apply the law in force at the relevant time. Older judgments may concern repealed or amended provisions. Historical publications in the German archive are labelled accordingly. English explanations assist orientation; German statutory terminology and the applicable legislation remain essential.

Related information

Procedures overview · Creditor rights · Corporate insolvency

Official German Insolvency Code · Official StaRUG

Practical implementation

Read the Insolvency Code as a system

Individual provisions must be applied in light of the procedural stage and the participant's role. Filing and insolvency grounds sit alongside rules on the estate, ranking, contracts, avoidance and restructuring. A claim-filing provision does not automatically answer a security question. Earlier facts may be governed by transitional provisions or older legislation. Each assessment should therefore identify the relevant date, legal entity and precise issue before selecting the applicable rule.

Include adjacent areas of law

The InsO is not the only relevant source. Civil procedure, corporate, employment, tax and European law may add requirements or limits. StaRUG restructuring is distinct from proceedings already opened under the Insolvency Code. For individuals, attachment protection and discharge require separation; for companies, management duties and liability are central. Advice must connect those rules to actual records and identify facts still needing confirmation.

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: An old judgment is relied upon

A business finds a decision under earlier legislation. The applicable text, transitional rules and later decisions need checking. Similar facts do not guarantee that the historical outcome remains applicable.

Example 2: A contract conflicts with mandatory law

A contract specifies particular insolvency consequences. The assessment must consider whether mandatory rules restrict the clause. Signature by both parties does not itself resolve enforceability.

Example 3: Several rights overlap

A supplier has a monetary claim, retention of title and possible counterclaims. Filing, ownership rights and set-off need separate and then coordinated assessment. A general reference to creditor rights is insufficient.

Example 4: A foreign connection was overlooked

A counterparty is actually managed abroad. Jurisdiction and applicable law should be established before relying solely on the InsO. A German-language contract does not make every insolvency consequence subject to German law.

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