Germany has a particular, uniform regulation for insolvency of natural and juristic persons, which is also realized similarly in other countries all over the world. Such regulations by law shall prevent an avalanche effect of single insolvent debtors affecting their creditors, who, furthermore, could again damage their creditors, causing a ripple effect throughout an economy. Although the collective settlement of the creditors’ claims is the focus of the insolvency regulation, debt relief of insolvent debtors is an attractive characteristic, especially for the insolvent debtors. Following a certain obligation time, debt relief gives insolvent debtors a chance to take part in businesses again, to be productive, and to contribute to progress and the gross national product. Thus, insolvency regulation is justified due to economic reasons.
However, the debt relief has been discussed controversially, since it could also motivate the unreasonable use of debts. Whenever natural persons are directly liable and their personal assets are at risk, due diligence might be conducted more duteously and debts are only claimed in case they can be payed back. By contrast, insolvency, imminent illiquidity, or indebtedness might be promoted even more due to the second chance by debt relief. Moreover, a current trend of insolvency tourism indicates the attractiveness of the debt relief implementation. Since the process of debt relief takes a relatively long time in Germany, different agencies even advertise to order debt relief in the U.K., where the relief process only lasts one year.
The present assignment introduces the basics, which facilitate insolvency tourism, and deals with the issue of its applicability to juristic persons.
Contents
1 Introduction: insolvency proceedings in Germany
1.1 Problem definition: debt relief for individuals
1.2 Objectives and methodology: insolvency tourism into the U.K
2 Insolvency due to mismanagement of the business
2.1 Reasons for insolvency, imminent illiquidity, and indebtedness
2.2 Missed opportunities of extrajudicial restructuring
3 Judicial insolvency proceedings in Germany
3.1 General preconditions
3.2 Types of insolvency proceedings
3.3 Transfer of liabilities
3.4 Debt relief in Germany
4 Debt relief order in the U.K
4.1 Preconditions for insolvency tourism
4.2 Advantages and disadvantages of insolvency tourism
5 Summary and conclusion
Integral Total Management Checklist
List of literature
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¡Carge sus propios textos! Gane dinero y un iPhone X. -
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¡Carge sus propios textos! Gane dinero y un iPhone X. -
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¡Carge sus propios textos! Gane dinero y un iPhone X. -
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¡Carge sus propios textos! Gane dinero y un iPhone X.