Insolvency proceedings (in general)
Insolvency proceedings are initiated if a business or a private individual is unable to pay debts. The insolvency regulation determines when this applies. The objective of the proceedings is for the remaining (material) assets to be distributed in equal parts to all creditors, or for arrangements to be made to preserve the company, under the supervision of the court. If proceedings ensue, the court will appoint an insolvency administrator or a trustee (see ‘Consumer insolvency proceedings’).