Out-of-court restructuring (settlement)
Out-of-court restructuring involves an agreement being reached between the debtor and their creditors without the involvement of a court. Such settlements are a kind of contract under private law.
Caution
In general, these rules also apply to entrepreneurs from EU Member States in Austria.
Advantages:
- No court fees are incurred.
- There is no public announcement of the company's insolvency.
Deadlines
It is possible to negotiate out-of-court restructuring up until 60 days after the company becomes insolvent or excessively indebted.
Companies must submit an application for institution of insolvency proceedings no later than 60 days after becoming insolvent or excessively indebted.
Please note
- It is also possible to reach a settlement before the company actually becomes insolvent.
- If the company only has a small number of creditors, it is preferable to arrange a face-to-face meeting – in particular with the main creditor – and set down the results in writing. If a company has a large number of creditors, a generic letter can be sent to all of them.
Legal basis
Insolvenzordnung (IO)
Translated by the European Commission
last update: 29 January 2021
responsible for content: Federal Ministry of Justice
