New law strengthens financial position of small companies

According to a report of the Haufe Verlag a bill of a new law securing the claims of creditors has been passed by the Upper House of German Parliament, the Bundesrat, and put to the vote of the Lower House of Parliament, the Bundestag.

This law is to help in particular small companies to collect their money more easily from defaulting debtors by means of a provisional warrant. This payment warrant, according to Haufe, closes a legal protection gap in proceedings which hitherto require extensive expert opinions on several interrogatories issues. In the past, in despite of the plaintiff being entitled to payment, he often went bankrupt even before the proceedings were closed due to their prolonged duration.

According to the report, a prerequisite for the issue of such a warrant is the plaintiff´s case having substancial chances of success. Furthermore, the court is to balance the plaintiff´s interest in a quick payment with that of the defendant in prior clarification of all relevant legal aspects. More information is available on the publishing house´s Web site. GERMAN