Declaration of objection

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A declaration of arrears is understood as a declaration by a creditor that he will only seek satisfaction of his claims against the debtor when all other creditors have been satisfied.

Declarations of arrears are particularly important for the arithmetical examination of overindebtedness in accordance with Section 67 (3) IO, since the claims of a creditor are not to be taken into account if the obligee submits a declaration of arrears and declares that he will only be satisfied with his claims after a negative one has been eliminated Equity capital (Section 225 (1) UGB - formerly HGB) or, in the case of liquidation, only after all other creditors have been satisfied. With a declaration of objection, the obligee also declares that no insolvency proceedings need to be opened due to the subordinate satisfaction of his claims.

Declarations of arrears in the restructuring process itself can be of further importance if a restructuring plan (previously compulsory compensation) is sought.