A customer, business partner, or borrower is insolvent—and your receivable is suddenly at risk. For suppliers, banks, investors, and shareholders, the question immediately arises: Can the default still be averted, and if so, how? The Credit Recovery Review from KINDL.trusted provides a quick, well-founded answer. In this article, you’ll learn what a Credit Recovery Review is, how it works, what documents are required, how much it costs, and who it’s suitable for.
What is a Credit Recovery Review?
A Credit Recovery Review is an efficient forensic analysis that is prepared quickly based on publicly available data and/or documents provided, and serves as the basis for recovering impaired receivables.
The starting point is always an insolvency that affects you—whether as a creditor (supplier, bank, lender), shareholder, investor, or trustee. Through an in-depth analysis of the individual or company affected by insolvency, you receive an expert-backed basis for decision-making regarding whether there are indications of asset transfers or other circumstances relevant to liability and criminal law.
Which areas are analysed in a Credit Recovery Review?
- Asset analysis of the debtor (assets, liabilities)
- The debtor’s earnings situation (income statement, key financial ratios)
- Liquidity analysis (cash flow analysis, working capital)
- Assessment of the date of insolvency (available cash, debts due)
- Assessment of the onset of insolvency-related over-indebtedness (going concern prognosis)
- Analysis of the shareholder structure (shareholdings, interconnections, financial circumstances, creditworthiness)
- Insolvency proceedings (status of proceedings, edict file, calculation of creditor losses, communication with the insolvency administrator)
What are the benefits of a Credit Recovery Review for creditors?
The Credit Recovery Review supports you from the opening of insolvency proceedings through to debt collection—in a structured manner and from a single source. The four key benefits:
1. Speed: results within 3 to 10 days
Every day counts, especially in insolvency cases. A Credit Recovery Review typically delivers results within 3 to 10 days.
2. Cost efficiency through the use of various data sources
Targeted analysis of public records and existing documents provides a meaningful overview without immediately requiring a comprehensive and costly audit.
3. Interdisciplinary approach and well-founded initial assessment
Legal Defense, Tax Litigation, and Forensics (Business Forensics & Fraud Investigation) collaborate at an expert level. The analysis is conducted by a generally sworn and court-certified expert.
4. Clear basis for decision-making on the further strategy
The result is a clear basis for the next steps: Is it worth pursuing the claim further, and what is the right course of action?
What exactly do clients receive?
- Analysis by a generally sworn and court-certified expert
- Determination of the date of insolvency and/or over-indebtedness under insolvency law
- Calculation of creditor damages
- Clear recommendations for action based on the analyses and evaluations
- Clear assessment of the criminal liability:
- fraudulent insolvency (§ 156 StGB), favoring a creditor (§ 158 StGB), and grossly negligent impairment of creditors’ interests (§ 159 StGB), as well as embezzlement (§ 153 StGB) and the unjustifiable misrepresentation of material information (§§ 163a et seq. StGB)
- Inspection of books
- Presentation of the facts and trial
- Tax treatment of the bad debt
- List of required documents for any in-depth review and examination of the facts (analyses and evaluations)
- A sounding board throughout the entire proceedings
Which criminal offences may be relevant in an insolvency?
If there are indications of dishonest business management or conduct, we examine in particular the insolvency offenses of fraudulent insolvency (§ 156 StGB), favoring a creditor (Section 158 of the German Criminal Code (StGB)), and grossly negligent impairment of creditors’ interests (Section 159 StGB), as well as embezzlement (Section 153 StGB) and the unjustifiable misrepresentation of material information (Sections 163a et seq. StGB). If such indications arise, this may open up new avenues for recovering the debt—for example, by joining the criminal proceedings as a private party.
Who is a Credit Recovery Review suitable for?
| Target group | Typical use case |
| Suppliers | Securing receivables (individual claims) |
| Banks, leasing, factoring | Systematic processing of loan defaults |
| Shareholders / investors | Risk assessment, review of liability claims |
| Attorneys / insolvency administrators | Defence, joining proceedings as a private party, criminal complaints |
Which documents are required for a Credit Recovery Review?
A Credit Recovery Review can be prepared based on publicly available data. If additional private documents are provided, the analysis becomes more informative.
Publicly available data sources
- (Historical) extract from the Austrian Commercial Register (Firmenbuch)
- (Historical) extract from the Austrian Land Register (Grundbuch)
- Ediktsdatei (Austrian insolvency database)
- Published annual financial statements
- Transparency Portal (Transparenzportal)
- KSV Kompass services
Documents provided by the client
- (Interim) bookkeeping records
- Annual financial statements
- Audit reports of the statutory auditor
- Extracts from the register of lawsuits and enforcement proceedings
- Documents from the insolvency proceedings (insolvency administrator’s reports, list of claims, claim filings)
How does a Credit Recovery Review work?
The process is divided into four clearly defined steps:
- Defining the scope of the engagement and providing the documents
- Data collection from public sources and review of private documents
- Analysis and evaluation of the data and documents, and preparation of a memo, statements, reports or expert opinions
- Clarification of open points with the client, issuance of the written report and recommendations for action
What happens after the Credit Recovery Review?
The Credit Recovery Review serves as an initial assessment and constitutes Phase 1. Upon request, Phase 2 involves further consultation and representation by generally sworn and court-certified experts, forensic accountants (in-depth forensic analysis), attorneys, and tax advisors. For this purpose, additional documents such as detailed annual financial statements, financial accounting records and balance sheets, lists of open items, or contracts are required.
Why KINDL.trusted? Law, tax and corporate accounting law (UGB) at one table
KINDL.trusted is a boutique law firm specializing in criminal law, tax law, accounting, and business administration. Criminal defense attorneys, tax advisors, lawyers, and generally sworn and court-certified experts collaborate across three synergistic service areas: defense in economic and financial criminal proceedings, representation during tax audits and in tax proceedings, as well as accounting expertise, forensic accounting, and compliance. For you, this means: no loss of information at the interfaces—and with us, the expert handles your case, not a junior attorney who is still learning the ropes.
Services are clearly delineated: KINDL Advisory GmbH handles analysis, evaluation, findings, calculations, expert opinions, review of financial records, and forensic fact-finding; KINDL Rechtsanwalt GmbH provides legal advice, representation, presentation of facts, joinder as a private party, litigation, and settlement negotiations; and KINDL Steuerberater GmbH manages the tax treatment of bad debt.
Conclusion: Don’t accept bad debt losses – get clarity now
A debtor’s insolvency does not automatically mean the permanent loss of your claim. A Credit Recovery Review reveals within a few days whether there are indications of asset transfers or circumstances relevant under liability and criminal law, and what options are available for debt collection .
Contact
Affected by an insolvency? Contact us for an initial assessment:
Marlis Wenninger
Partnerin | Sachverständige
