A closure order is available
The court may order or approve closure only where an increase in creditor losses cannot otherwise be avoided.
Insolvency proceedings
Business closure in insolvency: court review and evidence
Section 115 IO requires a concrete court review of the effects of closing a business on insolvency creditors.
Your insolvency law team
BRANDAUER Rechtsanwälte
Insolvency law, Salzburg and throughout Austria
We review the procedural status, contracts, payment records and security, then explain which legal question needs to be addressed next.
1 September 2026, Mag. Bernhard Brandauer, Rechtsanwalt
Closing an insolvent business is not merely an organisational decision. Section 115 IO requires the court to assess whether another solution could avoid increasing creditor losses.
If it is made credible that conditions to avert the disadvantage will be created within fourteen days, the decision is suspended until that period ends.
Preparation therefore requires business data, continuation prospects, offers and concrete effects on the estate.
Legal issue
Business closure in insolvency: court review and evidence
Closing an insolvent business is not merely an organisational decision. Section 115 IO requires the court to assess whether another solution could avoid increasing creditor losses.
| Legal issue | Evidence | Control point | Next step |
|---|---|---|---|
| Separate closure from continuation | The court may order or approve closure only where an increase in creditor losses cannot otherwise be avoided. | Closing an insolvent business is not merely an organisational decision. Section 115 IO requires the court to assess whether another solution could avoid increasing creditor losses. | A closure order is available |
| Document the court’s decision basis | Set out turnover, orders, costs, personnel, realization and continuation prospects in a reviewable form. | If it is made credible that conditions to avert the disadvantage will be created within fourteen days, the decision is suspended until that period ends. | The continuation benefit is evidenced |
| Classify the fourteen-day suspension | The fourteen-day suspension in Section 115 IO is not a general restructuring period; it concerns credible conditions to avert the disadvantage. | Preparation therefore requires business data, continuation prospects, offers and concrete effects on the estate. | Business data is missing |
| Evidence the estate impact | Keep the order, offers, projections and evidence of the claimed continuation benefit together. | Closing an insolvent business is not merely an organisational decision. Section 115 IO requires the court to assess whether another solution could avoid increasing creditor losses. | A closure order is available |
Next step
Has closure been ordered, or is its prevention being evidenced?
If it is made credible that conditions to avert the disadvantage will be created within fourteen days, the decision is suspended until that period ends.
Discuss the specific matter with the firm.
Has closure been ordered, or is its prevention being evidenced?
Your answers
Review the documents
The continuation benefit is evidenced
Set out turnover, orders, costs, personnel, realization and continuation prospects in a reviewable form.
Business data is missing
The fourteen-day suspension in Section 115 IO is not a general restructuring period; it concerns credible conditions to avert the disadvantage.
Separate closure from continuation
Separate closure from continuation
The court may order or approve closure only where an increase in creditor losses cannot otherwise be avoided.
If it is made credible that conditions to avert the disadvantage will be created within fourteen days, the decision is suspended until that period ends.
Document the court’s decision basis
Document the court’s decision basis
Set out turnover, orders, costs, personnel, realization and continuation prospects in a reviewable form.
Preparation therefore requires business data, continuation prospects, offers and concrete effects on the estate.
Classify the fourteen-day suspension
Classify the fourteen-day suspension
The fourteen-day suspension in Section 115 IO is not a general restructuring period; it concerns credible conditions to avert the disadvantage.
Closing an insolvent business is not merely an organisational decision. Section 115 IO requires the court to assess whether another solution could avoid increasing creditor losses.
Evidence the estate impact
Evidence the estate impact
Keep the order, offers, projections and evidence of the claimed continuation benefit together.
If it is made credible that conditions to avert the disadvantage will be created within fourteen days, the decision is suspended until that period ends.
Closure requires a concrete estate and loss analysis. Organise figures, documents and the basis for the court decision.
FAQ
Frequently asked questions
When may the court close the business? +
Where it is established that an increase in creditor losses cannot otherwise be avoided.
What do the fourteen days do? +
Where conditions to avert the disadvantage are made credible, the decision is suspended until the period ends.
Is an intention to continue enough? +
No. The continuation prospect and its effects on the estate must be evidenced.
What does this article not replace? +
It does not replace a review of the file or individual legal advice.
Topics
InsolvenzverfahrenUnterlagenPrüfung
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Tell us your role, the business concerned and the procedural status. We respond within one business day.
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Address
BRANDAUER Rechtsanwälte GmbH Giselakai 51 5020 Salzburg
Phone
+43 662 6280000