Navigation path

Share on 
	Share on Facebook
  
	Tweet it
  
	Share on google+
  
	Share on linkedIn
  
    
      E-mail
Set page to normal font sizeIncrease font size by 200 percentBookmark this pageChoose high-contrast version

Austria

Bankruptcy

Updated 01/2013

Legal requirements

Entrepreneurs may be able to avoid bankruptcy by anticipating difficulties - if they keep a close eye on the financial situation of their business.

Austrian insolvency proceedings are governed by the Insolvency Act (IO).

Insolvency procedures

There are various ways of proceeding if a company becomes insolvent:

An out-of-court settlement is an extra-judicial agreement between the debtor and creditors. It can be viewed as a type of contract under private law. If no settlement is reached in this procedure, the debtor must file for insolvency proceedings no later than 60 days after insolvency has been determined.     

The settlement proceedings enable an insolvent company to be restructured and then continued. There are settlement proceedings with and without the debtor’s personal responsibility.

Unlike settlement proceedings, proceedings for bankrupt companies are continued by the liquidator rather than the debtor. Debtors as well as any of their creditors can file for bankruptcy proceedings. Other proceedings can be initiated within the context of bankruptcy proceedings.

A payment plan is an administrative procedure without a minimum repayment amount. A payment plan can either be put forward together with the application for insolvency proceedings or during the course of the bankruptcy proceedings.    

The absorption procedure represents a ‘safety net’ for cases in which administration or a payment plan cannot be agreed due to lack of consent by the creditors. Reasons for this may be that creditors view the repayment period as excessive or that the repayment amount offered is too low.

Handling bankruptcy

Insolvency remuneration assurance

Insolvency remuneration assurance guarantees the means of subsistence of employees and their dependants should their employer be unable to pay them due to insolvency. It is based on the principle of insurance and is regulated by the Insolvency (Remuneration Assurance) Act (IESG).

Re-establishment after insolvency

The Austrian Trade Regulations Act dictates who is allowed to carry out business activities in Austria. Within the context of bankruptcy and insolvency, the following are examples of circumstances in which permission to carry out business activities would not be granted:

  • unpaid liability orders (e.g. fraudulent bankruptcy);
  • dismissal of insolvency proceedings due to lack of assets;
  • annulment of insolvency proceedings due to lack of assets.

Re-organisation

Insolvency may be avoided by carrying out a re-organisation process as set out in the Business Re-organisation Act. A prerequisite for this procedure is that re-organisation is required but insolvency is not imminent.

Re-organisation is required if a company becomes endangered due to negative economic trends and action must be taken in order to ensure that the business can be continued on a sustainable basis.

Entrepreneurs having experienced bankruptcy should not lose confidence in their ability to embark on a new business.

Resources

The Austrian Federal Economic Chamber provides its members with comprehensive information about bankruptcy.

Unternehmer in Not (Companies in Distress) provides field reports, information on crisis prevention, liquidity, loans, creditors and a best-practice example among other things.

Useful information for people living and working in Austria is available from HELP, the Austrian government help service or the Business Service Portal USP.

Programmes

The Carinthian Economic Promotion Fund supports the redevelopment, re-organisation and restructuring requirements of Carinthian companies via the KSG Kärntner Sanierungsgesellschaft mbH (Carinthian Redevelopment Company Ltd.).

Help & advice

Help & advice

The WIFI enterprise service WIFI Vienna is the coordination centre of the national enterprise network (UNS) of the Austrian Federal Economic Chamber. The Institute of Economic Development (WIFI) of the Viennese Economic Chamber provides free initial advice to businesses, with further advice available on a subsidised basis.

E-mail a business organisation near you

The EU runs a network (Enterprise Europe Network) of local business organisations in most European countries that may be able to help you.

Choose your country and town and enter your enquiry below.

Country

Austria

Feldkirch

Graz

Innsbruck

Klagenfurt

Linz

Salzburg

Wien

Belgium

Antwerpen

Arlon

Brugge

Brussels

Charleroi

Gent

Hasselt

Leuven

Libramont

Liège

Mons

Namur

Nivelles

Bulgaria

Dobrich

Plovidiv

Ruse

Sandanski

Sofia

Sofia

Stara Zagora

Vratsa

Yambol

Croatia

Osijek

Rijeka

Split

Varazdin

Zagreb

Cyprus

Nicosia

Czech Republic

Brno

Liberec

Ostrava

Ostrava

Pardubice

Plzen

Praha

Usti nad Labem

Denmark

Aalborg

Copenhagen

Herning

Kolding

Viborg

Estonia

Tallinn

Finland

Helsinki

Oulu

Tampere

Turku

Vantaa

France

Amiens

Annecy

Aulnat

Besançon

Bordeaux

Bourg en Bresse

Caen

Cayenne

Chalons-en-Champagne

Chambéry

Dijon

Fort-de-France

Grenoble

Lille

Limoges

Lyon

Marseille

Marseille

Marseille

Montpellier

Montpellier

Nancy

Nantes

Orléans

Paris

Pointe-à-Pitre

Poitiers

Privas

Rennes

Rouen

Saint-Denis

Saint-Etienne

Strasbourg

Toulouse

Valence

Germany

Berlin

Bremen

Bremenhaven

Chemnitz

Dresden

Düsseldorf

Erfurt

Frankfurt/Oder

Freiburg

Hamburg

Hannover

Kaiserslautern

Kiel

Konstanz

Leipzig

Magdeburg

Mannheim

Mülheim an der Ruhr

München

Potsdam

Reutlingen

Rostock

Saabrücken

Stuttgart

Trier

Ulm

Villingen-Schwenningen

Wiesbaden

Greece

Athens

Heraklion

Ioannina

Kavala

Kozani

Thessaloniki

Tripolis

Volos

Hungary

Budapest

Debrecen

Győr

Nyíregyháza

Pécs

Szeged

Székesfehérvár

Zalaegerszeg

Ireland

Dublin

Italy

Abruzzo

Aosta

Apulia

Apulia

Ascoli Piceno

Basilicata

Bologna

Bologna

Cagliari

Calabria

Calabria

Campania

Catania

Catania

Florence

Genova

Gorizia

Milano

Milano

Milano

Molise

Naples

Naples

Palermo

Palermo

Perugia

Pesaro

Pordenone

Ravenna

Rome

Rovereto

Sassari

Sicily

Terni

Torino

Torino

Torino

Trieste

Trieste

Udine

Venezia

Venezia

Venezia

Latvia

Riga

Lithuania

Kaunas

Klaipėda

Vilnius

Luxembourg

Luxembourg

Malta

Pieta`

Netherlands

Den Haag

Nieuwegein

Norway

Ås

Oslo

Stavanger

Tromsø

Poland

Bialystok

Gdańsk

Kalisz

Katowice

Kielce

Konin

Kraków

Lublin

Lublin

Olsztyn

Opole

Poznań

Rzeszów

Szczawno-Zdrój

Szczecin

Szczecin

Toruń

Warsaw

Warsaw

Wroclaw

Zielona Góra

Łódź

Portugal

Aveiro

Braga

Coimbra

Évora

Faro

Funchal

Lisboa

Ponta Delgada

Porto

Romania

Arad

Bacau

Bucuresti

Cluj-Napoca

Constanta

Craiova

Galati

Iasi

Ramnicu Valcea

Timișoara

Slovakia

Bratislava

Prešov

Slovenia

Koper

Ljubljana

Maribor

Spain

Albacete

Alicante

Badajoz

Barcelona

Bilbao

Bilbao

Ciudad Real

Donostia- San Sebastian

Ferrol

Las Palmas de Gran Canaria

Llanera

Logroño

Madrid

Murcia

Oviedo

Palma

Pamplona

Paterna (Valencia)

Santa Cruz de Tenerife

Santander

Santiago de Compostela

Sevilla

Toledo

Valencia

Valladolid

Vitoria- Gazteiz

Zaragoza

Sweden

Borlänge

Göteborg

Jönköping

Kramfors

Luleå

Malmö

Örebro

Östersund

Stockholm

Umeå

Västerås

Växjö

United Kingdom

Belfast

Bristol

Cambridge

Cardiff

Coventry

Inverness

London

Manchester

Newcastle

Yorkshire and Humber

Enter your message here

* required field (you must enter data here)