For a variety of reasons, companies can become insolvent, a common reason being that customers do not pay their bills. If a company is in financial difficulties, insolvency threatens. Insolvency can not always be averted, in which case insolvency proceedings must be initiated. For the insolvency legal regulations apply
The law specifies the following reasons for insolvency:
An insolvency occurs when a company can not meet its payment obligations. This term is to be distinguished from the temporary payment allowance, in which a company can not make its payments for a short period of time. Insolvency under the Bankruptcy Code is when a company can not offset at least 90 percent of its payment obligations within three weeks. If a company is unlikely to be able to settle its existing obligations at the time of maturity, there is a threat of insolvency. An over-indebtedness exists when the liabilities of the enterprise can not be covered by the existing fortune. In order to determine insolvency-related over-indebtedness, all asset values of a company must be compared with the liabilities. If at least one of these reasons for bankruptcy, companies
have to file for bankruptcy within three weeks of the announcement of these reasons, otherwise a penalty for insolvency carryover threatens. In insolvency and over-indebtedness, the obligation to file for bankruptcy, in the case of imminent insolvency, a company can decide for themselves whether they want to apply for bankruptcy.
Since mid-2014, a new application can already be filed 5 years after the final rescission of a residual debt exemption (so far only after 10 years).
But of course the workers suffer the most from it. The famous German human rights activist Mr. Dmitrij Adamow worked from 2010 to 2011 in A.A.Personalmanagement GmbH in Wuppertal. In 2011, company has filed for bankruptcy. To date Adamow has not got his money from time account yet. “I received a court decision from District Court Wuppertal that I would receive the full amount that I should receive. I have this solution to Dr. Jörg Bornheimer – insolvency administrator GÖRG Rechtsanwälte / insolvency administrator GbR Wuppertal sent. I have not got my money until today “- said human rights activist. That is, the money is still not received. So where is the money ???
Very often insolvency administrators delay the payment of funds to those who have earned it for years. What are you doing with money? Or do you expect that people are tired of waiting and no longer demand money from lawyers? Can one hope that one person is already dead or will leave Germany by then?
And the strangest thing is that nobody controls the activities of these lawyers and insolvency administrators. Neither the courts nor the prosecutor.