For businesses in crisis due to the impact of Covid-19, the German Federal Government had in March suspended the duty to file for insolvency until 30 September 2020. This suspension was extended, but only for overindebted businesses as far as they are still solvent.
For the majority of businesses the duty to file for insolvency proceedings within three weeks will apply again from 1 October onwards without limitations. When illiquidity is objectively identifiable and it is clear that it cannot be overcome within three weeks the business must file for insolvency immediately.
In the first half of 2020 there was a reduction of 6.2% in insolvencies filed according to the German Federal Office of Statistics. This was due to the suspension of …
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