Rejection due to lack of mass
The dismissal for lack of assets is a legal concept from the insolvency proceedings ( § 26 InsO ).
Insolvency proceedings can be rejected by the bankruptcy court if the debtor's available assets are unlikely to be sufficient to cover the costs of the insolvency proceedings . Rejection means that bankruptcy proceedings will not arise. If, for example, the money can be raised through an advance payment, it will not be rejected. Litigation costs are the costs incurred by the court as well as for the insolvency administrator and the creditors' committee . The public prosecutor's office responsible at the company's headquarters will automatically receive notification of “rejection due to lack of assets” and will check whether the provisions of the GmbHG have been violated ( delayed insolvency , bankruptcy , etc.).
An expert report will determine whether proceedings will not be opened due to insufficient funds. Such an opinion is drawn up by a preliminary insolvency administrator appointed by the court. Since it very often happens - due to a late filing of the application by the debtor - that no more funds are available for the implementation of a procedure, the insolvency challenge is of essential importance in the determination of possible funds. As part of the expert opinion, the provisional administrator will carry out a review for the existence of contestable facts and will list the income that is likely to be generated in the report. The professional associations assume that if the possibilities of appeal are restricted, the opening rate will be reduced by up to 30%. One example is the so-called fiscal privilege.
In the case of insolvency proceedings against the assets of natural persons as the applicant debtor, the deferral of the procedural costs usually enables those affected to open insolvency proceedings and thus the discharge of residual debt ( § 4a to § 4d InsO).
See also
Individual evidence
- ↑ Tax privilege in insolvency proceedings. Retrieved May 28, 2016 .
