Suspension of the discharge from debts

A number of debtors may find themselves in a situation where their income is temporarily lost due to the Government’s current or future epidemiological measures. The solution to avoid revocation of the discharge of debt may be the suspension thereof.

What conditions must be met?

  • The debtor's insolvency was only established only after the 2019 amendment to the Insolvency Act.
  • The debtor must have a legitimate reason for the suspension of the discharge of debt.
  • The discharge of debt may be suspended only within the course of the insolvency proceedings and must not take longer than 1 year.
  • The discharge of debt may be suspended only upon a motion filed by the debtor or by the insolvency trustee.

During the suspension, the debtor is not obliged to repay unsecured creditors‘ installments or pay the insolvency administrator's fee. Other obligations, in particular the information obligation, remain in force for the debtor. The debtor’s insolvency proceedings then continue after the respective period has expired or after the grounds of the suspension has lapsed.