Covid-19 coronavirus: Temporary suspension of the obligation to file for insolvency proceedings
31 March 2020
From announcement to law
With unprecedented speed, the legislation only proposed by the Federal Government on 16 March 2020 temporarily suspending the obligation to file for insolvency proceedings for companies affected by the Covid-19 pandemic until the end of 30 September 2020 has now passed all legislative stages.
The Covid-19 Insolvency Suspension Act (Covid-19-Insolvenzaussetzungsgesetz; COVInsAG) was published in the Federal Law Gazette as part of the Act on Mitigating the Effects of the Covid-19 Pandemic in Civil, Insolvency and Criminal Procedure Law (Gesetz zur Abmilderung der Folgen der Covid-19-Pandemie im Zivil-, Insolvenz- und Strafverfahrensrecht) (article 1 therein) on 27 March 2020. The COVInsAG has thus entered into force with retroactive effect as of 1 March 2020.
Read more about the suspension of the obligation to file for insolvency and the further legal consequences of the suspension in our snapshot.
A general overview of the Act on Mitigating the Effects of the Covid-19 Pandemic in Civil, Insolvency and Criminal Proceedings Law can be found in our separate bulletin "Access to new debt and equity during the corona crisis". Information on the establishment of the economic stabilisation fund, ie support for larger companies by means of guarantees and recapitalisation measures, which has simultaneously been initiated by the Federal Government, can be found in our bulletin "German rescue package takes effect".