Self-administration
As management, you retain control over your company – even during insolvency proceedings. A trustee supervises, you decide.
In regular insolvency proceedings, a court-appointed insolvency administrator takes control over the company's assets. Management loses its authority to act.
Self-administration according to §§ 270 ff. InsO is the counter-model: You as management remain in office and continue running the business – under the supervision of a trustee appointed by the court. The trustee only monitors the self-administration. He does not intervene in operational management.
This means: You retain administrative and disposal authority. You remain the direct contact for employees, customers, and suppliers; you steer the restructuring yourself.
In doing so, you use the instruments of insolvency law – for example, the possibility to get rid of burdensome contracts or to adjust personnel in a socially responsible manner. Wages and salaries are covered by the Federal Employment Agency for a period of 3 months. This agency manages a corresponding fund into which all companies in Germany pay.
Another decisive advantage over free restructuring: The insolvency/restructuring plan to be submitted to the creditors at the end is voted on by majority decision. Dissenting groups can also be replaced under certain conditions.
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FAQ on Self-Administration
When is self-administration appropriate?
Self-administration is particularly suitable when the company has a functional management, a restructuring plan is identifiable, and creditors are generally open to the approach. It is not an instrument for liquidation but for stabilization, continuation, and restructuring.
What distinguishes self-administration from the protective shield procedure?
The protective shield procedure according to § 270d InsO is a special form of preliminary self-administration. It requires that only impending insolvency or over-indebtedness exists – not already occurred insolvency. It offers time-limited protection against enforcement measures. The deadline for submitting an insolvency plan is a maximum of three months.
Can self-administration be revoked?
Yes, if it becomes apparent that self-administration leads to disadvantages for creditors or the management does not meet the requirements. In these cases, the court can revoke self-administration and appoint an insolvency administrator. Professional support significantly minimizes this risk.
How long does a self-administration procedure last?
The duration depends on the individual case. Typically, six to eight months pass between the application and the implementation of the restructuring solution. Good preparation can significantly shorten the process duration.
What role does the creditors' committee play?
The provisional creditors' committee has a central importance: The court is bound by its unanimous vote – both for and against self-administration. The same applies to the person of the trustee. Therefore, early dialogue with the main creditors is crucial.