Certificate of insolvency is the document given to the creditor with the decision of the enforcement office that "the debtor has no property that can be seized". Article 105 of the EBL.
Types
- Temporary insolvency certificate: In case the existing property is not sufficient
- Absolute insolvency certificate: No property
Advantages Provided
- The receivable can be pursued for 20 years (statute of limitations). extends)
- If the debtor acquires new property, immediate seizure
- Interest continues to accrue
- It is considered a prerequisite for the bankruptcy request (the trader is on the debtor)
From the Debtor's Perspective
- The certificate of insolvency discredits the debtor
- Loans from banks can't get it
- If it's a trader, it's in danger of bankruptcy
Supreme Court 12. HD
12. HD accepts that the executive director must meticulously carry out "all research" (bank, land registry, traffic, SGK) before the certificate of insolvency is issued, and that incomplete research is the reason for invalidity.
New Pursuit with Certificate of Insolvency
- Immediate lien in case the debtor acquires new property
- Like bank account, salary, inheritance
- Starting a new pursuit. not required — action on the current file
Enforcement attorney is recommended.