From debt to discharge: Consumer insolvency proceedings in Austria

Abstract: Recently, two legislative acts have significantly changed Austrian insolvency law: Firstly, the overall reform of enforcement law ("Gesamtreform des Exekutionsrechts – GREx")¹⁾¹⁾BGBl I 2021/86. has drastically altered the interface between individual and general enforcement. And secondly, the implementation of the European Restructuring and Insolvency Directive²⁾²⁾Directive (EU) 2019/1023 of the European Parliament and of the Council of 20.06.2019 on preventive restructuring frameworks, on discharge of debt and disqualifications, and on measures to increase the efficiency of procedures concerning restructuring, insolvency and discharge of debt, and amending Directive (EU) 2017/1132 (Directive on restructuring and insolvency), ABl L 2019/172, 18. has improved the framework for debt discharge not only for entrepreneurs but also for consumers. This article provides a detailed overview of the consumer insolvency proceedings in Austria and also addresses the activities of the recognised debt counselling agencies.