Filing for bankruptcy is never an easy decision, but it has to be made once you can no longer pay your debts.
It is even an obligation, so it must not be concealed. But many of you are surely asking: "How do I file for bankruptcy?
How does that actually work? What needs to be considered and what is needed for it?"

Who Can File for Bankruptcy at All?

Questions like "How do I file for bankruptcy and who is even responsible for it" are answered below. The following describes the rules in Germany.
The responsibility for filing for bankruptcy lies solely with the company's managing director.
It is his job to monitor his company's financial situation and make sure it doesn't become over-indebted.
For individuals it's a bit different, because here this step can also simply go through a lawyer. You don't have to file for personal insolvency yourself.
Likewise, merely impending insolvency can be a reason to enter insolvency proceedings.
For that, however, a recognized debt counselor must first issue a certificate that this is the case.
In addition, there should previously have been an attempt at debt settlement with the creditors, which however failed.
Of course, creditors can also file a petition in order to get their money from the debtor.

What You Need for It

The certificate proving that an attempt at settlement has failed is one thing.
But there are further documents you need for it:

  • a completed insolvency petition
  • a statement of assets
  • an overview of creditors
  • a list of claims.

As a debtor, every official liability should be disclosed and nothing withheld from the creditor, otherwise discharge of residual debt won't happen in the first place.
Besides the question "How do I file for bankruptcy", you're surely also wondering what happens afterwards.

Where You Have to Turn
As a private individual there isn't much to consider, because once all the requirements for personal insolvency are met, you can simply go to the local court (Amtsgericht) in your place of residence and register.
Companies are likewise tied to a specific local court, which lies in the district where the business activity is carried out.
So it doesn't matter where the managing director actually lives, since it's about the company itself.
If several courts are responsible, however, the bankruptcy filing goes to the court where the petition was submitted first.
So it isn't much more complicated in this respect either, which is why you should stick to it.
Especially if you don't want the whole thing to take on even worse proportions.