Comparative law notes
This English term refers to a type of insolvency that can be remedied through creditor negotiation and the timely sale of non-current assets. It not the kind of insolvency that the German concept denotes and that leads to an insolvency filing. Indeed, the German Federal Court of Justice has itself drawn that distinction when it indicated that one kind of insolvency that does not fit within the meaning of the German insolvency law is a lack of liquidity which is remedied within 21 days. "A distinction must be drawn between insolvency and a mere increase in payments, i.e. a shortage of liquidity that can be remedied on short notice. This must be remedied within a maximum period of three weeks. BGH, Ruling of 21 August 2013. Case 1 StR 665/12
