What costs will I incur if I file for bankruptcy?
March 18, 2023 | 40,00 EUR | answered by Helma Beck
Dear Insolvency Lawyer,
My name is Tobias Böhm and I am currently facing the difficult decision to file for insolvency. The situation is very stressful for me, as I, as a self-employed individual, have run into financial difficulties with my business. Revenues have dropped significantly and debts continue to accumulate. I see no other option but to file for insolvency in order to resolve my financial situation.
My biggest concern in this matter is the costs that I will incur if I take this step. As my financial situation is already very strained, I fear that additional costs associated with the insolvency proceedings could further worsen my situation. Therefore, I would like to know from you what costs I can expect if I file for insolvency. Are there fees for filing the insolvency proceedings? Do I have to pay for an insolvency administrator? What other expenses can I expect?
I would greatly appreciate it if you could answer these questions for me, so that I can better weigh my decision regarding filing for insolvency. I hope that you can also provide me with possible solutions to minimize costs and help me navigate through this difficult phase.
Thank you in advance for your help and support.
Sincerely,
Tobias Böhm
Dear Mr. Böhm,
I understand that the decision to file for insolvency is a very difficult and stressful situation for you. As a self-employed individual who has run into financial difficulties, it is important to inform yourself about the costs involved in the insolvency proceedings in order to make an informed decision.
First and foremost, I would like to emphasize that the costs of insolvency proceedings generally depend on various factors and can vary from case to case. However, there are some general costs that may arise when filing for insolvency.
The costs for filing for insolvency typically consist of court fees and attorney fees. Court fees are based on the value of the dispute and can therefore vary. Attorney fees are calculated according to the Lawyers' Remuneration Act (RVG) and also depend on the value of the dispute and the scope of the attorney's work.
Additionally, costs for an insolvency administrator may arise. The insolvency administrator is appointed by the insolvency court and takes over the administration of the insolvency estate. The remuneration of the insolvency administrator is usually paid from the insolvency estate. It is important to note that the remuneration of the insolvency administrator is legally regulated and does not have to be paid directly by you as the debtor.
Other expenses that may arise in the context of insolvency proceedings include costs for expert opinions or insolvency benefits that are paid to employees.
To minimize costs, I recommend consulting an attorney specializing in insolvency law early on. An experienced attorney can provide you with comprehensive advice and help you optimize costs. Furthermore, an attorney can show you possible solutions to improve your financial situation and make your insolvency proceedings as smooth as possible.
I am available for further questions and am happy to advise you personally in my online office hours. I hope that this information has been helpful to you and wish you success in overcoming this difficult phase.
Kind regards,
Helma Beck
Attorney specializing in insolvency law
