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What does “opening of insolvency proceedings” mean?
The opening of insolvency proceedings is the stage at which the court accepts the insolvency petition and formally starts the procedure. At the same time, an insolvency administrator or trustee (Insolvenzverwalter / Treuhänder) is appointed to manage the debtor’s assets.
From this moment on, the debtor loses the right to dispose of his or her assets independently.
Why is direct contact with creditors prohibited?
Concentrating management in the hands of the administrator
Once the proceedings have been opened, only the insolvency administrator is authorised to deal with all financial claims. The aim is to ensure a fair and transparent distribution of the available funds and assets among all creditors.
Preventing preferential treatment
Direct contact between the debtor and a single creditor may lead to that creditor being favoured over others, which violates the principle of equal treatment of creditors (Gläubigergleichbehandlung).
Protecting the debtor legally
Individual negotiations can place the debtor in a legally risky situation, for example:
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endangering the discharge of remaining debts (Restschuldbefreiung),
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raising accusations of attempting to circumvent the proceedings or to disadvantage other creditors.
What is the proper way to communicate?
Via the insolvency administrator
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All letters, invoices, and communications received by the debtor should be forwarded immediately to the insolvency administrator.
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Any enquiries made by creditors should be answered only through the administrator.
No direct replies to personal letters
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If a creditor sends a threatening letter or a direct demand for payment, it should be passed on to the administrator without any personal reply.
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Personal responses or promises can weaken the debtor’s legal position and confuse the progress of the proceedings.
Is it allowed to pay debts directly during the proceedings?
No. It is forbidden to pay any individual debt outside the administrator’s control.
Any direct payment to a single creditor may be considered unlawful preferential treatment and can have serious legal consequences, such as:
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the revocation or refusal of the discharge of debts,
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claims requiring the creditor to repay the amount received.
What about threats from creditors?
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After the opening of the insolvency proceedings, creditors are no longer allowed to carry out their own seizures or enforcement actions.
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All individual enforcement measures are legally suspended (frozen).
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If the debtor receives threats or improper demands, the insolvency administrator should be informed immediately.
Practical tips
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Keep copies of all letters and communications received from creditors.
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Record the dates of receipt and forward the documents to the insolvency administrator as quickly as possible.
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Do not agree to any private payment arrangements, no matter how attractive they may appear.
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If you feel under pressure or uncertain, contact a debt counselling service (Schuldnerberatung) or a specialised insolvency lawyer.
Conclusion
After the opening of personal insolvency proceedings in Germany, the insolvency administrator alone is responsible for managing all relations with creditors.
Direct contact by the debtor with creditors can:
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create serious legal risks,
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jeopardise the discharge of remaining debts,
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and disrupt the orderly progress of the procedure.
Strictly following the official communication channel via the administrator ensures a smoother process and protects the debtor from unnecessary legal and psychological stress.
The website’s editorial team strives to provide accurate information based on thorough research and multiple sources. However, errors may occur or information may be incomplete or outdated. Therefore, please regard the information in this article as an initial guide only and always consult the competent authorities and professional advisers for binding and up-to-date information.
