Insolvency
Insolvency is often the prelude to bankruptcy. However, the mere fact that a company or person is insolvent doesn’t necessarily mean that creditors have suffered or will suffer any losses.
Any person – whether they are registered in the commercial register or not – and any company can declare themselves insolvent in court and thereby initiate a bankruptcy procedure against themselves.
Bankruptcy
Creditors can force a debtor with unpaid due debts into bankruptcy if they file a bankruptcy action in the bankruptcy court. This procedure is only available against persons and companies registered in the commercial register.
