- Legal Basis
- § 283 StGB
- Sentencing Range
- Imprisonment up to five years or a fine; in especially serious cases imprisonment up to ten years
- Summary
- Concealing or destroying assets, books, or records in a situation of overindebtedness or imminent insolvency
Bankruptcy Offences (Section 283 StGB)
Bankruptcy offences constitute the core of German insolvency criminal law and protect the interests of a debtor’s creditors during economic crisis. The provision covers numerous acts by which a debtor in a situation of overindebtedness or insolvency withdraws assets from creditors’ access or makes it more difficult to assess their financial situation. In practice, bankruptcy offences are frequently prosecuted in connection with corporate insolvency proceedings — a risk that expat entrepreneurs and company directors in Germany must take seriously.
Legal Basis
Section 283(1) of the German Criminal Code (StGB) provides (in excerpt):
“Anyone who, in a state of overindebtedness or impending or actual inability to pay, removes or conceals components of their assets that would belong to the insolvency estate in the event of opening insolvency proceedings, or destroys, damages, or renders unusable in a manner contrary to the requirements of orderly management […], shall be punished with imprisonment of up to five years or a fine.”
The provision contains a total of eight different types of conduct in Section 283(1) Nos. 1–8 StGB.
Elements of the Offence
Crisis situation: The act must be committed in a situation of overindebtedness, impending or actual inability to pay. Alternatively, it suffices if the inability to pay or the opening of insolvency proceedings was caused by the act (Section 283(2) StGB).
Acts of commission (Section 283(1) Nos. 1–8 StGB): Removing or concealing assets (No. 1), destroying, damaging, or rendering assets unusable (No. 1), loss-making or speculative transactions or wasteful expenditures (No. 2), selling goods obtained on credit below value (No. 3), feigning rights of others or acknowledging fictitious rights (No. 4), failure to maintain books (No. 5), removing or altering commercial books (No. 6), balance sheet violations (No. 7), and deteriorating financial position by other means (No. 8).
Belonging to the insolvency estate: The affected assets must potentially belong to the insolvency estate.
Intent or negligence: The basic offence requires intent. However, Section 283(4) StGB also criminalises negligently causing overindebtedness or inability to pay, and Section 283(5) StGB criminalises recklessly failing to recognise the crisis.
Typical Methods of Commission
Common forms include transferring assets to related persons or abroad, destroying business records and accounting documents, excessive personal withdrawals by the managing director during a crisis, fictitious invoices and fabricated liabilities, continuing an obviously insolvent business while taking on further obligations, and concealing the actual financial situation through falsified balance sheets.
Sentencing Range
The basic offence carries a penalty of up to five years’ imprisonment or a fine. In especially serious cases (Section 283a StGB), such as acting out of greed or knowingly putting numerous people at risk of losing their deposits or entrusted funds, the penalty ranges from six months to ten years’ imprisonment. Attempt is punishable (Section 283(3) StGB).
Typical Defence Strategies
The defence frequently begins by challenging the existence of the objective crisis situation: was there actually overindebtedness or inability to pay at the time of the act? Determining this requires a thorough economic analysis. Furthermore, it is examined whether the conduct actually violated the requirements of orderly management — economically justifiable decisions do not satisfy the offence. The subjective element also offers defence approaches: did the accused know about the crisis situation, or were they mistaken about the financial position? For managing directors and board members, the question of actual control over the relevant actions is also relevant.
Frequently Asked Questions
Was ist Bankruptcy Fraud?
Nach § 283 StGB ist bei drohender oder eingetretener Zahlungsunfähigkeit oder Überschuldung unter anderem das Beiseiteschaffen von Vermögen, eine falsche Buchführung oder das Verschleiern der wirtschaftlichen Lage strafbar.
Welche Verteidigungsansätze gibt es?
Entscheidend sind der Zeitpunkt der Krise, die Abgrenzung von Vorsatz und Fahrlässigkeit sowie die Kausalität. Der Tatbestand ist eng mit dem Insolvenzrecht verzahnt.
Welche Strafe droht?
Freiheitsstrafe bis zu fünf Jahren oder Geldstrafe, in besonders schweren Fällen mehr.
Muss ich zur Polizei, wenn ich als Beschuldigter vorgeladen werde?
Einer rein polizeilichen Police Summons müssen Sie als Beschuldigter nicht folgen, und Sie sind nie verpflichtet, sich zur Sache zu äußern. Einer Ladung der Staatsanwaltschaft oder des Gerichts sollten Sie folgen – schweigen dürfen Sie aber auch dort.
Sollte ich vor der Akteneinsicht aussagen?
In aller Regel nein. Ohne Kenntnis der Ermittlungsakte lässt sich nicht beurteilen, welche Beweise vorliegen. Eine Einlassung sollte erst nach Akteneinsicht und in Abstimmung mit dem Verteidiger erfolgen.
Kann ein Strafverfahren eingestellt werden?
Ja. Je nach Beweislage kommen eine Einstellung mangels hinreichenden Tatverdachts (§ 170 II StPO), wegen Geringfügigkeit (§ 153 StPO) oder gegen Auflagen (§ 153a StPO) in Betracht. Nach Akteneinsicht prüfen wir die Möglichkeiten.
Summons or accusation of Bankruptcy Fraud? What matters now
Make no statement to the police at first
As an accused person you are never obliged to comment on the allegation. Anything said to the police can be used against you. Provide statements only through your defense attorney and only after reviewing the case file.
File inspection comes first
A sound defense against the allegation of Bankruptcy Fraud requires knowledge of the investigation file. Only once the available evidence is clear can we decide whether a statement is advisable or whether remaining silent is the better strategy.
Possible discontinuation of proceedings
Not every case ends in a main hearing. Depending on the evidence and any prior record, the proceedings may be discontinued for lack of sufficient suspicion (§ 170 II StPO), for triviality (§ 153 StPO) or subject to conditions (§ 153a StPO). Often a penalty order without a public trial can be achieved.
Victim-offender mediation and restitution
In many cases, victim-offender mediation or making good the damage (§ 46a StGB) can significantly reduce the sentence or enable a discontinuation. Whether this is advisable in your case is something we assess based on the file.
What we do after reviewing the file
We examine the evidence for reliability and admissibility, look for procedural errors, develop the defense strategy, negotiate with the public prosecutor on a discontinuation and represent you, if necessary, in the main hearing before the District Court or Regional Court of Bonn.
Available 24/7: +49 228 504 463 36
This information does not replace a review of the individual case. In criminal proceedings, the defence strategy depends substantially on the case file, the specific allegation and the evidence.
Why BAFTEH Strafverteidigung?
- Direct contact with your defense attorney – no intermediaries
- Available around the clock, including nights and weekends
- Fast file inspection and a clear defense strategy
- Focused exclusively on criminal law
- Defense in Bonn, Cologne and the entire region
Written by attorney Philip Bafteh, criminal defense lawyer in Bonn. Philip Bafteh publishes regularly on criminal and commercial law and defends accused persons in investigative and trial proceedings.
More about the attorney →Last updated: Juni 2026
Free Initial Assessment
Have you received a summons or are you under investigation? Call us – the initial assessment by phone is free for up to 10 minutes.
+49 228 504 463 36