Corona help: Minister of Justice calls for longer insolvency protection

Berlin Companies hard hit by the corona crisis can hope to be able to avoid filing for bankruptcy even longer. Federal Justice Minister Christine Lambrecht (SPD) wants to extend the suspension of the obligation to file for insolvency beyond January for companies that are still pending disbursement of the state aid planned since November.

“The state provides the economy with extensive financial aid, but it takes time to pay out. Therefore, I am committed to suspending the obligation to file for insolvency for these companies beyond January 31, ”Lambrecht told the Handelsblatt.

Due to the corona pandemic and the initially hardly foreseeable negative consequences for the economy, the federal government suspended the strict reporting requirements for overindebtedness and insolvency in spring 2020. The obligation to apply for insolvency has been in effect again since October; for companies that are still waiting for the payment of the corona aid planned since November 1st, the obligation to file for insolvency is suspended in January.

Of course, Lambrecht emphasized that it remains correct to limit interventions in bankruptcy law to the bare minimum. A timely filing for bankruptcy is important to ensure confidence in the solvency and creditworthiness of economic operators.

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