Interruption Of Proceedings Upon Insolvency – "What Now?"

Background

In an era where the number of insolvencies is on the rise, a growing number of claimants involved in ongoing court proceedings are faced with the question: "What will happen to my lawsuit if the opposing party becomes insolvent?" This article deals with this question. In its recent judgment of 23 July 2024 - II ZR 222/22, the German Federal Court of Justice confirmed the importance of proceeding correctly when resuming a lawsuit that was interrupted due to the opening of insolvency proceedings. The judgement dealt in particular with the importance of a claim filed validly with the insolvency administrator as a decisive prerequisite for the continuation of a lawsuit over an insolvency claim.