Filing for Insolvency: The First 72 Hours
After filing for insolvency, every hour counts: secure documents, review payments and inform key contacts in an orderly manner.
After filing for insolvency, time and security matter most: The first 72 hours should be used to provide all required documents, review pending payments before they are made and inform all relevant contacts in an orderly manner. Since the provisional insolvency administrator may make contact on the day the application is filed, the business must be ready to provide information and take action at short notice.
The first three days shape what happens next
Filing the application does not mark the start of a routine administrative process. Information may be required within the first few hours, even though it is scattered across different folders, software systems or people. The business must therefore establish a reliable overview.
Three tasks take priority:
locate the required documents and provide them in an orderly manner,
review whether pending payments are permissible,
share necessary information in a controlled manner.
These tasks are directly connected. Without up-to-date documents, it may be impossible to assess a payment reliably. Without clear responsibilities, different people may provide contradictory information or act independently.
Proper documentation is therefore not only relevant to insolvency proceedings. It is a fundamental part of reliable commercial administration. This also becomes clear in tax matters, such as when businesses need to protect their input tax deduction through precise invoice details or clarify when managing directors are liable for a limited liability company’s tax debts.
Make documents available quickly
The provisional insolvency administrator may make contact at very short notice. The business should therefore immediately decide who will gather documents, who will answer questions and who will document all communication.
The initial aim is not to forward as many files as possible without reviewing them. What matters is compiling the information in a clear and traceable manner. A central overview listing each document, its storage location, the responsible contact and its processing status is useful.
Data quality deserves particular attention. Conflicting versions, unclear file names or missing supporting documents waste valuable time in an already tense situation. Similar problems can also arise outside insolvency proceedings, for example when a permanent establishment must be classified correctly for tax purposes.
Do not make payments without reviewing them
Immediately after filing, the question arises as to which payments are still permissible. Blanket decisions are risky. Payments should neither continue automatically nor be stopped independently without first clarifying the consequences and whether doing so is permitted.
The business should therefore prepare an up-to-date list of all pending payments. This includes transactions that have already been prepared or automated. Each item should record the amount, recipient, purpose, due date and current status. The next step is to clarify how each payment may be handled.
This review protects not only liquidity but also the people responsible from avoidable mistakes. A structured approach to deadlines is equally important, as it is when dealing with a late tax return.
What does this mean for craft business owners?
Craft businesses depend heavily on coordinated action between the office, workshop and construction sites. Orders, wages, customer payments and ongoing jobs may be handled by different people. Once the insolvency application has been filed, the business therefore needs a clear internal policy.
Management should appoint a central coordinator. Employees must know whom to forward external enquiries to and which decisions they may no longer make on their own. The business should also record which customers, suppliers or other parties need to be informed. The content, timing and sender of each message must be agreed in advance.
Uncoordinated communication creates additional uncertainty. Brief, factual and documented information is therefore more helpful than spontaneous attempts at explanation.
Recommended action: 72-hour checklist
During the first few hours:
appoint a central contact and a deputy,
document any contact from the provisional insolvency administrator,
secure documents and access rights,
record pending payments and flag them until clarification is obtained.
On the first and second day:
compile requested documents in an orderly manner,
clearly flag uncertainties and missing documents,
include automated payment transactions in the review,
prepare a list of people and businesses that need to be informed.
By the end of the 72 hours:
summarize outstanding requirements and queries,
record decisions together with the responsible person and time,
establish binding communication channels for employees,
organize the next tasks by urgency and responsibility.
Frequently asked questions
Why are the first 72 hours after filing for insolvency so important?
During this period, essential documents may already be requested, payments reviewed and important contacts informed. An orderly start lays the groundwork for the next stages.
Which documents should craft businesses have ready?
Businesses should have the documents needed to provide a quick overview of the company and its financial situation ready. The specific documents required should be clarified directly and then documented in full.
Can payments still be made after filing for insolvency?
There is no blanket answer. Pending payments should be recorded individually and reviewed to determine whether they are permissible before they are made or stopped.