Insolvency monitor (Sachwalter)

The insolvency monitor (Sachwalter) plays an important role in Eigenverwaltung proceedings (debtor-in-possession management under Sections 270 et seq. of the German Insolvency Code). The monitor is appointed by the insolvency court to ensure that creditors’ rights are respected in the proceedings and that all steps are carried out within the framework of insolvency law. In this respect, the insolvency monitor acts as a supervisor, but usually without powers that take effect externally. Creditors file their claims with the insolvency monitor (Sec. 270f (2) InsO), who keeps the insolvency schedule.

The insolvency monitor must carry out these duties impartially and neutrally, always in the interest of all creditors, reports to the creditors’ bodies (creditors’ committee, creditors’ meeting) and is subject to the supervision of the court. It is important that the insolvency monitor always abides by the rules and that the interests of all creditors are protected.