Document Type

Article

Disciplines

International Law

Abstract

The new German Insolvency Code (Insolvenzordnung = InsO) went into force on January 1, 1999, thereby replacing two sets of insolvency laws. In the western part of Germany, there was the time-honored 1877 Bankruptcy Law (Konkursordnung) and a 1935 Composition Law (Vergleichsordnung); in the eastern part the 1991 General Execution Law (Gesamtvollstreckungsordnung) had replaced a former GDR statute and was applicable only in the territory of the former East Germany.

Despite its youth, the new Code is at this moment subject to some amendments. They are felt to be necessary since the practical experience of some two and a half years with the new law has shown that there are a number of flaws and inadequacies. They refer primarily to that part of the Code which deals with consumer insolvency,' which in its present form is a novum in German insolvency law. This special type of insolvency proceeding, however, shall not be the subject of the following remarks. This article deals, rather, with the main part of the new Code having to do with the insolvency of entrepreneurs and legal entities.

Even though there do not yet exist many decisions of higher courts, let alone of the Supreme Court in civil matters (Bundesgerichtshof = BGH), one gets a first impression of where the new Code is successful and where it is not. Some of these issues shall be addressed here-especially those which, to my mind, also appear to be of interest outside of Germany and its specific insolvency legislation.

Accessibility Requirements

1

Download

Share

COinS