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Insolvency filing obligation in force again without restriction
Pursuant to Section 15a InsO or Section 42(2) BGB, the legal representatives of German corporations and associations are obliged to file an insolvency petition when their organization is practically insolvent. This obligation had been suspended by the rules of the COVID19-Insolvency Suspension Act (COVInsAG) since March 2020 under conditions that were modified several times in terms of content. The last extension of this regulation expired on April 30, 2021.
A further extension called for by an association of small and medium-sized businesses BVMW and the political party SPD has not yet been granted. Hence responsible persons are obliged to file for insolvency promptly in order not to expose themselves to the risk of criminal prosecution and personal recourse.
More on CovInsAG and its consequences for creditors can be found here.