Insolvency contestation

Efficient defence against insolvency contestation (Insolvenzanfechtung)

One of our core competences as lawyers specialising in litigation and insolvency law is the defence against insolvency contestations. Insolvency contestationsby insolvency administrators are a frequently occurring phenomenon that often irritates those affected at first. In a letter, a mostly completely unknown insolvency administrator demands payment of an often five-figure or even significantly higher sum and threatens to take legal action.

For many entrepreneurs, an insolvency contestation is incomprehensible. Actually, from a commercial point of view you have acted correctly: you have received payments from the debtor with pressure, using instalment payments or through execution after possibly years of litigation, which are now contested by the insolvency administrator.

It is legally possible that the insolvency administrator has the possibility to contest past legal transactions of the insolvent entrepreneur. In such cases, the insolvency administrator can reclaim already collected or executed amounts to the insolvency estate. This applies, for example, if other creditors of the insolvent company were disadvantaged by payments made before the opening of insolvency proceedings and if the beneficiary entrepreneur was aware of the insolvency.

The entrepreneur concerned can hardly defend himself against such claims on his own, as it is assumed by law in many cases that the beneficiary has known about the debtor’s crisis. It used to be sufficient to have accepted instalment payments even though this was not initially agreed. In addition, in recent years case law has increasingly extended the contestability of payments. With our expert representation, it is very well possible to defend such claims or at least to reduce them. The decisive laws and regulations have a wide scope of interpretation. In addition, the case law is very dynamic and diversified when it comes to contestation claims.

Effective strategies in case of claims

It is precisely in these disputes that a precise knowledge of the case law and moreover the procedural law is essential. At the very least, it is often possible to achieve a reduction in the payment demanded. Unfortunately, many entrepreneurs – and also many lawyer colleagues without knowledge of insolvency law – do not know this. They then prefer to take legal action, where settlement discussions are often the more sensible way.

In addition, the special situation of insolvency administrators has to be taken into account during negotiations. Working together with them constructively, they are often enough willing to talk out of court and to make concessions, if you strike the right note and have the necessary industry knowledge.

We represent you with our expertise and experience aslawyers specialising in insolvency law and litigation. With an intelligent negotiation strategy, we can achieve for you to successfully counteract to an insolvency contestation out of court or – if necessary – in litigation and to prevent or at least reduce the damage threatening you.

In addition, we also offer you counselling on preventive contracts or general terms and conditions as well as the targeted management of collection efforts to avoid the risk of insolvency contestation in the future. Furthermore, we also offer an audit of the activities of your previous consultants. It may be a culpable breach of duty on the part of your lawyer or your debt collection agency to accept payments which subsequently prove to be contestable under insolvency law.

Please feel free to call ua without obligation, we will support you in fending off claims from insolvency administrators.