Consequences of bankruptcy ruling

For the debtor

  • After the bankruptcy ruling the debtor loses all control over his assets.
  • All debts, even those that are not yet due, become due automatically.
  • All individual collection actions are immediately suspended.
  • No new individual collection actions for debts that were incurred before the bankruptcy ruling may be filed.

For the creditor

  • The creditors can file their claims with the trustee.
  • Contracts aren’t automatically suspended; however it lies within the discretion of the creditor’s committee if contracts are to be fulfilled.
  • In certain cases the creditor can withdraw from the contract provided the purchase item was not delivered.
  • Creditors can offset any counterclaims of the debtor with his claim, provided his claim originates from before the bankruptcy ruling.

For legal actions

  • After the bankruptcy ruling the courts, where legal actions are already pending, suspend all legal actions. Exceptions can be made for urgent matters that cannot be delayed.
  • The creditor’s meeting can decide to proceed with pending legal actions.

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