Deferral of procedural costs in insolvency proceedings Unfortunately this specification of service has not yet been completely translated.

If you do not have sufficient assets to pay the costs of conducting insolvency proceedings, you can (as a natural person) apply for a deferral of the costs of the proceedings.

When conducting insolvency proceedings, procedural costs are incurred, which can be considerable (see "Costs of insolvency proceedings"). Only if these costs are covered can insolvency proceedings be opened with the possibility of obtaining discharge of residual debt. If you do not have sufficient assets or do not receive an advance on procedural costs from third parties, you can apply for a deferral of the costs of the proceedings. Your spouse is in principle obliged to pay an advance on procedural costs; only if your spouse is also unable to pay, a deferral of the costs of the proceedings can be considered.

The deferral means that you do not have to make any payments - usually until the discharge of residual debt has been granted. The deferred costs of the proceedings are to be paid primarily from the insolvency estate during the insolvency proceedings and until the end of the assignment declaration. If the costs of the proceedings have not yet been repaid to the state treasury or have not been repaid in full after the discharge of residual debt has been granted, payment in instalments may be granted for a maximum of 48 months. The prerequisite for this is that you are not in a position to cover the outstanding costs of the proceedings at once.

The court may change its decision on the granting of the deferral if your personal or economic circumstances that are decisive for the decision have changed significantly. Such a change must be notified to the court without delay. If you do not comply with this obligation despite a request from the court, the deferral may be lifted.

If the conditions for this are met, the court grants the deferral separately for each stage of the proceedings. Stages of the proceedings are in particular the opening proceedings, the actual insolvency proceedings and the discharge of residual debt proceedings.

  • Application for the opening of insolvency proceedings
  • Admissible application for discharge of residual debt
  • Application for deferral of the costs of the proceedings with attached declaration that there is no ground for refusal under § 290 sec. 1 no. 1 InsO. Such a reason exists if you have been finally sentenced to a fine of more than 90 daily rates or to a custodial sentence of more than three months in the last five years before the application for the opening of insolvency proceedings or after this application for a criminal offence under Sections 283 to 283c of the Criminal Code.
  • The request for deferral must be accompanied by a statement of the assets, in particular of the amount of current income, of the current liabilities together with the corresponding supporting documents. The insolvency courts also provide forms for this declaration of personal and economic circumstances.

If an advance claim against the spouse under § 1360a sec. 4 BGB or life partner pursuant to § 5 LPartG comes into consideration, the application must contain information on the spouse's ability to pay, the origin of the liabilities and the causes of the debt, so that the court can assess the question of the obligation to advance (see BGH, decision of 24 July 2003 IX ZB 539/02, juris paragraph 19) (We, 15/10)

Preconditions

  • Deferral of the costs of the proceedings can only be granted to natural persons (not possible for legal persons, for example a GmbH)
  • Application for deferral of the costs of the proceedings
  • Application for the opening of insolvency proceedings
  • Admissible application for discharge of residual debt, i.e. the deadlines of § 287a InsO must be complied with and there are no grounds for refusal (read also "Residual debt exemption").
  • It must be able to achieve an exemption from the liabilities in the insolvency proceedings.

Related Links

  • § 4a ff. Paragraph 1 of the Insolvency Code (InsO)
  • § 290 Insolvency Code (InsO)
  • § 1380a Abs. 4 Bürgerliches Gesetzbuch (BGB)
  • If you have filed an application for the opening of insolvency proceedings, the insolvency court will check whether the costs of the proceedings are covered.
  • If there is no cost recovery, the insolvency court will request an advance on court costs from you.
  • If you do not have sufficient assets to pay this advance, you can apply for a deferral of the costs of the proceedings.
  • In order to speed up the proceedings, it is advisability to file the application for deferral at the same time as the application for the opening of insolvency proceedings.

Responsible for the content
No information available

Last update or date of publication
01.11.2021