Current Developments in Germany

Abstract

Germany’s Covid-19 Insolvency Act contains far-reaching temporary changes to the country’s insolvency law. Sections 1 and 2 of the act regulate the requirements for suspending the obligation to file for insolvency and the subsequent consequences. Section 3 limits insolvency proceedings filed by a creditor between 28 March and 28 June 2020 to cases where the reason for opening was present on 1 March. Notably, the Federal Ministry of Justice is authorized to extend some of the act’s provisions until 31 March 2021.