Debt settlement proceedings Schuldenregulierungsverfahren Franz Mohr Austria

2008  8599 debt settlement proceedings

Debtor in possession Section 186  In debt settlement proceedings (Schuldenregulierungsverfahren) the debtor remains in possession of the bankrupt’s estate unless the court orders otherwise (debtor in possession).

Übersicht MinimumquotaTime-limit for payment Out-of-court composition Agreement with all the creditors Reorganisation plan 20% 30% 2 years 5 years Agreement of the majority of the creditors Settlement planIncome situation for the next five years. 7 yearsAgreement of the majority of the creditors Proceedings for income levy 50% 10% 3-7 years 7 years Decision by the court

Reorganisation plan  Inadmissibility of the reorganisation plan proceedings - Section 141  The petition is inadmissible:  3.…. should the bankrupt’s creditors not be offered a payment of at least 20% of the claims within two years from the day of approval of the reorganisation plan proposal. Natural persons not operating an enterprise must offer to pay at least 30% of the claims, should they propose to make payments over a period exceeding two years; this time period may not exceed five years;

Assets  Assets are sold  The bankruptcy court shall surrender the right of tenancy and other rights of use concerning residences to the bankrupt’s free disposal if the residential space is indispensable to the bankrupt and the family members living in his common household.

Settlement plan Section 194  Contents and inadmissibility of the settlement plan (Zahlungsplan)  The debtor must offer the bankrupt’s creditors a dividend of not less than an amount that corresponds to his income situation for the next five years. The time-limit for payment may not exceed seven years.

Proceedings for income levy  During the bankruptcy proceedings at the latest together with the petition for approval of a settlement plan (Zahlungsplan) the debtor may petition to undertake the proceedings for income levy (Abschöpfungsverfahren) and subsequent debt discharge.  The debtor shall attach to the petition a statement that he shall assign to a trustee to be appointed by the court the distrainable part of his claim on income from employment or other recurring payments with a surrogate function for income for a time-period of seven years after finality of the decision ordering the proceedings for income levy (Abschöpfungsverfahren).

Obligations of the debtor Section 210  While the assignment statement is in effect the debtor is obliged  to be adequately gainfully employed or should he be unemployed to try and find such employment and not refuse a reasonable occupation;  …..

Discharge  The court shall terminate the proceedings for income levy (Abschöpfungsverfahren), should  1.three years of the duration of the assignment statement have lapsed and the bankrupt’s creditors have received at least 50% of the claims during the bankruptcy proceedings and the proceedings for income levy (Abschöpfungsverfahren) or  2.the duration of the assignment statement have expired and the bankrupt’s creditors have received at least 10% of the claims during the bankruptcy proceedings and the proceedings for income levy (Abschöpfungsverfahren).  Discharge based on equity.

Statistics  8599 debt settlement proceedings  66,7% settlement plans  31% proceedings for income levy 2008: Discharge in 217 proceedings for income levy No discharge in 16 proceedings No decision in 69 cases