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In the case of bankruptcy, once proceedings have been instituted the company always falls under the supervision of a liquidator.
In general, these rules also apply to entrepreneurs from EU Member States in Austria.
In order for bankruptcy proceedings to be instituted, a company must be insolvent or in excessive debt. Moreover, it must have sufficient assets available to cover costs, at least the costs of instituting bankruptcy proceedings. If sufficient assets are not available, an advance on costs must be paid by the corporate representatives of a legal entity or by shareholders holding more than 50 percent of shares in the company.
Creditors having paid an advance on costs have a right of recourse against any other persons who would have been obliged to pay an advance on costs.
Failure to institute bankruptcy proceedings due to there being insufficient assets to cover costs leads to withdrawal of the company's business licence.
Applications to institute bankruptcy proceedings can be submitted either by the debtor themselves or by any of their creditors.
The application must be filed by:
- The partner with unlimited liability in the case of:
- the managing director in the case of:
- the management board in the case of:
The bankruptcy proceedings are instituted by the court, and their institution is publicly announced in the online insolvency register.
The court appoints a liquidator. All assets (including office furniture, warehouse inventory etc.) fall under their supervision. The debtor's mail will be intercepted and forwarded to the liquidator instead.
It is also possible to submit a restructuring plan whilst bankruptcy proceedings are ongoing.
The liquidator can decide whether to recognise or contest the amount of receivables that the creditors have claimed before court.
Companies must submit an application for institution of insolvency proceedings no later than 60 days after becoming insolvent or excessively indebted and upon fulfilment of the necessary conditions.
There is no expert information available.
responsible for content: Federal Ministry of Justice