The most important principle of the German insolvency law is the equal treatment of the creditors of the insolvency debtor. To satisfy their claims, the creditors are entitled to the debtor’s insolvency estate. The insolvency estate consists of the entire assets of the debtor which belong to him at the time the insolvency proceeding is opened and which he obtains during the proceeding.
The insolvency challenge rights give the insolvency administrator, under certain prerequisites, access to assets which the debtor disposed of to the detriment of the creditors prior to the filing for insolvency, thus increasing the insolvency estate.
In this White Paper we have summarized the basic principles and legal consequences of several challenge rights.