Can I start a business despite insolvency?
January 1, 2022 | 40,00 EUR | answered by Erwin Hausdorf
Dear lawyer,
My name is Rolf Helbig and I am facing a difficult situation. Some time ago, I had to declare bankruptcy and now I am wondering if it is possible for me to start a new business despite my bankruptcy.
Bankruptcy was a major burden for me and has greatly affected my financial life. However, I now want to start fresh and become professionally active again. Since I have always dreamed of starting my own company, it is important for me to know if it is even possible while I am still in bankruptcy.
I am concerned that my bankruptcy may severely limit my chances of a new professional perspective. However, I do not want to give up and am willing to work hard to make my dream come true.
Could you please inform me if it is legally possible to start a business despite bankruptcy? Are there specific requirements I need to meet in order to do so? And what risks and limitations could arise for me if I take this step?
I would greatly appreciate it if you could help me in this matter and provide me with an overview of my options.
Thank you in advance for your assistance.
Sincerely,
Rolf Helbig
Dear Mr. Helbig,
Thank you for your inquiry and trust in my expertise in insolvency law. It is understandable that after the difficult phase of insolvency, you now want to start fresh and pursue the dream of starting your own business. I will be happy to assist you and provide you with all relevant information on this topic.
First and foremost, it is important to know that it is generally possible to start a new business despite being insolvent. However, there are certain requirements and restrictions that you need to consider. It is important to be aware that your insolvency will be noted in the Schufa as well as in the commercial register, and potential business partners or creditors may have access to this information. This could affect your reputation and make it more difficult to obtain loans or find business partners.
Furthermore, during your insolvency, you have certain obligations that you must also consider when registering a new business. For example, you must transfer any income from your self-employment to the insolvency administrator and must not incur new debts without prior agreement with them.
It is also important to mention that there are certain professions in which insolvency excludes you from engaging in a professional activity. These include activities in the financial services or healthcare sectors. Therefore, before starting a new business, you should check whether your insolvency prevents you from pursuing your desired field.
In conclusion, it is generally possible to start a new business despite being insolvent, but you should be aware that this comes with certain risks and limitations. I recommend seeking thorough legal advice beforehand and weighing all possible consequences before taking this step.
I hope this information has been helpful to you and I am happy to answer any further questions you may have.
Sincerely,
Erwin Hausdorf, Attorney at Law
