Home » Business » Self-employed people face insolvency trap !!!: After Corona, off to jail?

Self-employed people face insolvency trap !!!: After Corona, off to jail?

It’s amazing when I notice a post by the Augsburger Allgemeine in the early hours of the morning, which was published at 3 a.m. and was difficult to find again in the late morning, where information was provided on the one hand, but to protect against punishment by the self-employed (managing director ) who actually should have filed for insolvency long ago, the federal government passed several legislative changes within the suspension of insolvency filings and neither informed the federal government nor the ARD & ZDF about a change in the law!
We remember:
After the outbreak of the corona epidemic, the government suspended the obligation to file for bankruptcy in the event of insolvency and over-indebtedness from March 2020 to the end of September 2020.
The only condition was that the company’s crisis was due to the pandemic and that there was a prospect of eliminating the insolvency. Then the suspension of the bankruptcy filing was extended again until the end of December and again until the end of April and everything seemed to be OK, right?

As early as October, the relief only applied to companies that were over-indebted. This rule also expired at the end of December.
From January 1, 2021 to the end of April, only companies that are threatened with insolvency or over-indebtedness and that applied for state aid between November 2020 and February 2021 are exempt from the obligation to register for insolvency.
In addition, this application must not be hopeless and must be able to avert the impending bankruptcy.

That’s awesome!
How could a self-employed person have applied for state aid between November 2020 and February 2021 with the hopelessness of when and in what intensity or length the next lockdown will be, with the prospect that bankruptcy can be averted, without exposing himself to the risk of becoming a criminal offense close?

And did you notice anything else?
Look here:
As early as October, the relief only applied to companies who were over-indebted… ..From January 1, 2021 until the end of April… .. are exempt from the obligation to register for insolvency …… over-indebtedness threatens.
As a result, the company, which was practically insolvency due to a lockdown, was not over-indebted, that these companies would have had to comply with the bankruptcy filing obligation at the end of September and when companies kept afloat with loans because the state aid was still not fully paid out are now over-indebted, should have complied with the insolvency filing obligation by December 31, 2020 at the latest.

You have to see it in a very sterile & government-practical way.
Actually, due to all the lockdowns, everyone should have complied with the insolvency filing obligation by the end of September 2020 and since it was only informed that the exemption from the insolvency filing obligation was extended, this is a godsend for the public prosecutors, as ignorance does not protect against punishment.
If a managing director is now punished for delaying bankruptcy,
(Under civil law, managing directors and board members are liable with their private assets in the event of failure to submit or late filing of an application – and that in unlimited amounts. In criminal law there is a risk of up to three years imprisonment)
then, with and through a judgment, the state aid will certainly be reclaimed, where I think that the tax office will be commissioned to do this, which will first block the accounts and then burst the loans to maintain the company, which doesn’t give a shit because all German citizens are liable for these loans between 90-100%.
So with interest and compound interest including processing fee, i.e. what the banks could have earned in 5, 10 or more years, depending on the length.
If it is not a serious delay in bankruptcy, I think, no one will have to go to jail, because a prison sentence costs taxpayers’ money and a fine brings money into the tax coffers.
Actually, the public media should have warned all self-employed so intensely that not only does every child know what a delay in bankruptcy is, but that no self-employed person runs the risk of being criminally liable due to the instruction of the federal government to suspend the bankruptcy filing!
And what about the federal government?
The government wanted to prevent companies from having to file for bankruptcy because they were late in getting government aid, which at first glance seems OK.
Because if you find that, according to the Ministry of Economic Affairs, the November and December aid (2020 !!!!) only received 96 percent of the advance payments on the accounts of the recipients (Stand 12.03.2021) Then the government was also aware that the aid would or should be received later by the recipients, because a comparison via the tax office on the sales figures of a company from the previous year would have been sufficient with a very simple application to enable a quick transfer .
Once you the side of the federal government If you read a bit backwards, you will find the following quotes:
“A wave of corporate bankruptcies and layoffs would be much more expensive for all of us.”

“The bridging aid, which has been extended until the end of June 2021, also supports companies that are particularly hard hit by the measures to combat pandemics. These are direct grants that do not have to be repaid. “

“With the extraordinary economic aid, up to 75 percent of sales from November and December 2019 are granted proportionally for the number of days of closure in November and December 2020.”

Ahh yes and what about January, February and March 2020?
There is nothing to be found on the government side, i.e. whether up to 75 percent of sales are also paid for the months of January, February, March, April, May and June 2020, although the extended bridging aid has been decided by the end of June 2021.
We can be curious to see whether the government is actually ready to pay out up to 75 percent of sales of 0 euros for the period from March 22 to April 20, 2020, if you “The Chronicle of the Corona Crisis” looks at.
Why does that remind me of the black zero right now?
Does anyone even understand anything here, except for the super election year 2021, where the real insolvency figures may / should not appear so that one can claim before the elections how well the government has mastered the corona crisis?
I would not be surprised that once the electoral machinery is started, that the corona crisis will be declared over and that once the new government has been elected and the tax coffers are almost empty, that there will then be a wave of lawsuits for delaying insolvency and for the tax coffers again fill up, alias:
“The coal has to come in from somewhere!”
Therefore, dear self-employed, read this post meticulously and then off to the tax advisor!
greetings

Leave a Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.