What does delay in filing for insolvency mean?
The management of a legal entity, such as a GmbH, UG or AG, and of a partnership without a natural person as a personally liable partner, such as a GmbH & Co. KG, must file for insolvency without culpable delay as soon as illiquidity or over-indebtedness occurs. The deadline is three weeks at the latest after the onset of illiquidity and six weeks after the onset of over-indebtedness (Section 15a (1) of the German Insolvency Code). Imminent illiquidity does not yet give rise to a duty to file.
Anyone who fails to file the application, files it incorrectly or files it late is delaying the insolvency. This is a criminal offence punishable by a fine or imprisonment (Sec. 15a (4) and (5) InsO).
