The most important thing about the question “What can an insolvency practitioner?”
What does an insolvency administrator do?
The insolvency administrator is used in bankruptcy proceedings to manage, realize and distribute the bankruptcy estate among the creditors.
What can an insolvency administrator do?
The insolvency administrator may not only dispose of the bankruptcy estate. He can z. B. also reverse certain actions of the debtor if they reduce the mass (insolvency contestation). In the event of corporate insolvency, he is also entitled to give notice of termination under less favorable conditions.
What can the bankruptcy administrator seize?
He may seize the assets and income of a debtor, but must observe the seizure prohibitions and the seizure exemption limit.
Bankruptcy Administrator: Duties and Responsibilities
If a person or a company is insolvent and consequently has to file for bankruptcy, a so-called insolvency administrator is appointed. On the one hand, bankruptcy is intended to ensure that indebted persons regain freedom from debt and thus become solvent again. On the other hand, the claims of the creditors should be satisfied as much as possible. But what role does the insolvency administrator play in this?
The attachable assets of the indebted person are called insolvency estate. This is administered either by the debtor himself or by an insolvency administrator. The latter is appointed by the competent bankruptcy court. Certain duties and tasks have to be fulfilled by the insolvency administrator. But what can an insolvency practitioner and what not?
- Determination, administration and distribution of the bankruptcy estate: First of all, the bankruptcy estate must be determined. To do this, it must be determined what of the debtor’s assets and income may be seized by the insolvency administrator. In addition, a list of creditors is drawn up and then the attachable shares are distributed evenly among the creditors.
- Creation of an insolvency plan: The bankruptcy administrator, or the debtor, can create the insolvency plan and submit it to the court. This restructuring plan serves to list the goal of the bankruptcy and to inform all parties involved. The insolvency administrator is also responsible for monitoring the implementation and fulfillment of the goals set in the insolvency plan.
- Duty to provide information to the creditors’ meeting and insolvency court: The insolvency administrator must inform the insolvency court on request about the current status of the pursuit of goals in the insolvency proceedings. The insolvency administrator must also provide information to the creditors’ meeting and submit a final invoice to them after the insolvency proceedings have been concluded. Incidentally, the insolvency administrator has no obligation to provide information to individual creditors.
An insolvency administrator must always work properly and conscientiously. Its job is to enforce the goals set in the bankruptcy process. The main aim is to satisfy the claims of the creditors. If he cannot achieve the goals and if his duties are violated by the insolvency administrator, he is obliged, in accordance with Section 60 of the Bankruptcy Code, to pay for the damage he has caused himself:
The insolvency administrator is obliged to pay compensation to all parties involved if he culpably violates the obligations incumbent on him under this law. He is responsible for the diligence of a prudent and conscientious insolvency administrator.
What is a preliminary insolvency administrator allowed to do?
This is appointed by the court if an application for bankruptcy has already been filed but the actual proceedings have not yet been opened. According to Section 22 of the Bankruptcy Code, its task is to secure and maintain the assets of a debtor.
In addition, a preliminary insolvency administrator must check whether the existing assets will be sufficient to cover the costs of the proceedings. He can also be commissioned by the court as an expert to check whether there is a reason for opening, e.g. bankruptcy.
What can bankruptcy administrator seize?
The assets, the income and the things of a debtor can in the context of insolvency proceedings seized are. However, a distinction must be made between attachable and non- attachable parts, as some are subject to seizure protection. But what can the insolvency administrator seize and what not?
For example, the bank account or the wages of a debtor can be seized, according to the Chapter 7 bankruptcy. Certain types of income and earnings, however, cannot be seized are. A certain portion of the account balance can also be protected from attachment for the deductible. In addition, not all possessions of a debtor may automatically be attached, such as items for personal use and household.
Debt counseling – support for debtors
It is not uncommon for people to find themselves in financial distress and no longer able to escape the mountain of debt on their own. Before you despair, you should contact a debt counseling service in the USA and arrange an appointment. The debt counselor will then work with you to find a way out of the debt trap.
- Attorney Debt Fighters offers extensive debt advice for over-indebted people or people threatened with bankruptcy. If you have a low income, this is also possible for free.
- Under the motto “Help for self-help”, the debtor receives support in gaining an overview of his financial situation and in working out ways to settle debt.
- Attorney Debt Fighters’ association offers general social and life counseling, which you can also turn to with economic and financial problems. If the general advice does not help you to get out of your plight, the association can refer you to a further advice center.
Debt counseling in Goslar: What to expect
It happens again and again that over-indebted, desperate people do not seek professional help because they do not understand how these offers work, what costs they will incur and to what extent the offer of help can free them from their misery.
Essential for successful debt is the disclosure of your personal financial situation over the debt counselor. Without your active participation in the problem solving process, it is hardly possible to get you out of all of your debts. In an initial consultation, the debt counselor must first analyze your individual debt situation so that the debt can be settled later.
The debt offered by public, government or non-profit organizations, usually for free. However, if you urgently need a consultation, it is advisable to consult a debt lawyer, as the waiting times are usually shorter there. Be sure to find out about legal fees and fees at the first appointment.