Insolvency avoidance challenge law is the means of assuring equitable distribution in an economic crisis. This complex area of law is subject to dynamic interpretation in court rulings.
Avoidance law is a constant political issue.
The current regulations established in response to the coronavirus pandemic and the restrictions on the challenge opportunities provided by lawmakers in this respect reflect events at this time (Section 2 (1) no. 4 Act Regarding the Temporary Suspension of Insolvency Petition Obligations and Restriction of the Liability of Governing Bodies in the Event of Insolvency as a Consequence of the COVID-19 Pandemic [Gesetz zur vorübergehenden Aussetzung der Insolvenzantragspflicht und zur Begrenzung der Organhaftung bei einer durch die COVID-19-Pandemie bedingten Insolvenz; COVIDInsAG].
The same is true with regard to Section 96 (1) StaRUG, which entered into effect with the Act Regarding the Further Development of Restructuring and Insolvency Law [Gesetz zur Fortentwicklung des Sanierungs- und Insolvenzrechts; SanInsFoG] of December 22, 2020, Federal Gazette [Bundesgesetzblatt; BGBl] I, 3256 et seqq. that limits challenges pursuant to Section 133 InsO.
The enforcement and defense of avoidance claims presumes an analysis of the circumstances of the involved parties in the specific case.
In their role as insolvency administrators, BRRS attorneys are concerned with the determination and assertion of avoidance claims and enforce them in the interest of all creditors. When engaged as counsel, we also deal with the defense of claims arising from insolvency challenges.
We constantly probe the legal opportunities for challenging transactions in our counseling and forensic work, which includes as well the challenging of debtor’s transactions pursuant to the Act Regarding the Avoidance of a Debtor’s Legal Actions Outside of Insolvency Proceedings [Gesetz über die Anfechtung von Rechtshandlungen eines Schuldners außerhalb des Insolvenzverfahrens; AnfG]. Our practical expertise is documented in a large number of court decisions at the highest level.
BRRS Decisions by the Highest Courts Regarding Insolvency Challenge: