Anyone who is no longer able to meet their financial obligations is, as we know, bankrupt. A word we're familiar with and one that makes life hard for some. In Italian it's also called banka rotta, which means nothing other than a broken bench. Back then, moneychangers still offered their services on benches. All in all, insolvency is at hand, and it brings far-reaching consequences.

Debts and their weight

Many people have felt the meaning of bankruptcy firsthand. Debts and their weight have an influence on our lives that shouldn't be underestimated. This is how an insolvency offense that is criminally prosecuted comes about:

  • The debts grow over your head
  • You don't want to admit it, but you're already up to your neck in the mess
  • Quick action is now called for
  • A debt counselor is the best choice
  • You have to play with your cards on the table
  • Insolvency is unavoidable
  • The meaning of bankruptcy is now in full swing

Now your livelihood is at risk, and the term bankruptcy first appeared in Hamburg in 1457. As a result, it is anchored in German criminal law (§ 283, § 283a StGB). An insolvency offense, if you will, that can't simply be made to disappear.

Not always hopeless

As you can see, the meaning of bankruptcy has been known for a long time and didn't arise from the many debts of today. Whether a company or a private individual, it can happen to any of us. So it also depends on the interpretation, whether it was intentional or not. It can arise from an economic crisis as well as from your own fault. The meaning of bankruptcy therefore never comes out of nowhere, and many people have to reckon with the threat of punishment up to prison sentences. But if you're willing to compromise and honest, the situation doesn't always have to be hopeless. When several creditors are lined up, each of them wants to grab a share in a settlement.

Prison sentences and fines
Debts are no small matter and pile up more and more. A fine as well as a prison sentence of up to five years can quickly result. That makes the meaning of bankruptcy more far-reaching than you'd think. And overindebtedness and insolvency can change your life. In principle, you're unable to act from one day to the next, and it must not lead to delayed filing for insolvency. A good advisor, a lawyer and people who mean well by you are then worth their weight in gold. But as always, "honesty is the best policy", and then you get out of the matter with a black eye. Legal advisors can arrange installment payments and tax advisors can obtain deferrals. Extended deadlines for the outstanding amounts can also create a certain amount of breathing room. Because bailiffs and enforcement attempts over non-payment will soon put an end to the whole thing, and you're left caught with your pants down.