Obligation to file for insolvency in case of over-indebtedness

The obligation to file for insolvency in case of existing over-indebtedness was suspended by the 2nd COVID-19- law in Austria for the period from 01.03.2020 to 30.06.2020. This period has now been extended by Federal Law Gazette I No. 58/2020 from 02.07.2020 to 31.10.2020. It therefore applies to the reason for the opening of insolvency proceedings in the case of over-indebtedness that an insolvency application must be filed without undue delay, but at the latest within 60 days after 31.10.2020 (i.e. by 30.12.2020) or within 120 days after the objective occurrence of over-indebtedness, whichever period ends later. Insolvency openings based on creditor applications in the event of (only) existing over-indebtedness are not possible until 31.10.2020.

CAUTION: The obligation to file for insolvency and the possibility of opening insolvency proceedings on the basis of creditors’ petitions in the event of insolvency remains unchanged. Special care is therefore required, especially for managing directors, when checking and delimiting over-indebtedness to insolvency.

Mag. Gerhard Schedlbauer

Banking and capital market law
Competition law
Data protection law [...]

Dr. Norbert Scherbaum

Banking and capital market law
Inheritance law
Insolvency law, restructuring, insolvency administration