Significant changes in debt collection law from 2025 – What you need to know

Significant changes in debt collection law from 2025 – What you need to know

Welcome to our latest blog post!

Today we present important changes in the area of debt collection and bankruptcy law that will come into force on 1 January 2025.

These changes could have a significant impact on the financial management of registered companies.

The revised Debt Enforcement and Bankruptcy Act aims to tighten up debt enforcement practices and prevent abusive bankruptcies.

Legal entities and the self-employed are entering a new era in which outstanding debts must be settled more quickly than before.

This means a significant acceleration of the debt enforcement process.

From 2025, bankruptcy proceedings will be mandatory if claims are not settled on time.

This is a tougher approach, as companies and the self-employed who fail to meet their financial obligations will face legal consequences more quickly.

In concrete terms, this means that bankruptcy proceedings can be initiated within three months of the due date if payment is not made.

We advise all affected companies to carefully review and adjust their payment processes to minimise the risk of bankruptcy. It is vital that you, as a business owner or financial manager, understand the new rules and act accordingly.

If you have any questions or would like personalised advice, our experts are here to help.

Stay informed and act proactively to take your business safely into the future.

Why the rush to introduce new legislation?

The new legislation aims to prevent abusive bankruptcies. It primarily affects legal entities and self-employed persons registered in the Commercial Register.

If you have any questions or require assistance, please contact us using the contact form or book an appointment directly using the yellow button. We look forward to hearing from you!