Insolvency is often the prelude to bankruptcy. However, the mere fact that a company or person is insolvent doesn’t necessarily mean that creditors have suffered or will suffer any losses.

Any person – whether they are registered in the commercial register or not – and any company can declare themselves insolvent in court and thereby initiate a bankruptcy procedure against themselves.


Creditors can force a debtor with unpaid due debts into bankruptcy if they file a bankruptcy action in the bankruptcy court. This procedure is only available against persons and companies registered in the commercial register.

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