Bankruptcy, legal proceedings granting cost-saving sale of property of insolvent debtors (adjudicated bankrupts, i.e. legal or natural persons, the latter can also claim private bankruptcy). The claims asserted and ascertained are satisfied in quotas, according to the principle of equal treatment. Preferential claims (e.g. costs of the proceedings, claims of employees) are totally satisfied. The adjudicated bankrupt continues to be liable for claims not satisfied with that part of his/her property which is safe from bankruptcy or property s/he has acquired later on. In order to protect employed persons the Insolvenz-Ausfallsgeld-Fonds was established in 1978.
Literature: R. Holzhammer, Österreichisches Insolvenzrecht, 51996.