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Fraudulent bankruptcy under section 156 StGB: diminution of assets to the detriment of creditors

Section 156 StGB: six months to five years, or one to ten years for damage exceeding 300,000 euro. Distinction from sections 157, 158 and 159.

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2 July 2026, Mag. Christopher Angerer, Rechtsanwalt , last updated 9 October 2026

Fraudulent bankruptcy under section 156 StGB sanctions the intentional diminution or concealment of assets that prevents one or several creditors from obtaining satisfaction. It targets constellations in which a debtor actively shields assets from creditor access or removes them from the proceedings.

The elements, examples, and sentencing ranges under section 156 StGB are explained by this article, which also distinguishes section 157 StGB (harming another debtor's creditors), section 158 StGB (preferential treatment of a creditor), and section 159 StGB (gross negligence). The article provides general information; it does not replace advice on an individual case.

What is your situation regarding the section 156 StGB charge?

Four constellations, one clear next step.

Whether administrator complaint, asset transfer, gift to relatives or dispute about the amount of damage: choose the constellation that applies to you.

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01 Question 1

What is your situation regarding the section 156 StGB charge?

From a legal perspective the precise constellation determines the next step. Choose the situation that applies to you.

All paths at a glance

Overview of all answers.

01

Complaint by the insolvency administrator: review the report and build a counter-position.

Complaints by insolvency administrators are often based on the insolvency report and the review of business records. From a legal perspective the report must be examined in detail, since it typically collects indicators of asset shifts, fictitious liabilities or gratuitous transfers. These indicators are not conclusive; they can be unsettled or interpreted differently.

The defence should confront the administrator's report with its own submissions, contractual documents and expert assessments rather than confine itself to a general denial.

In depth: elements of section 156 StGB →
02

Asset transfer shortly before insolvency: work out the economic background.

Transfers shortly before insolvency quickly come under suspicion as asset shifts. From a legal perspective it must be examined whether the transfer had an economic background, for instance as performance of an existing liability, the provision of security or as a market-customary transaction.

Both the reduction of assets and the impairment of creditor satisfaction must be covered by intent under section 156 StGB. Where a genuine liability is discharged, preferential treatment under section 158 StGB must also be examined if other creditors are disadvantaged after the debtor becomes unable to pay. Grossly negligent conduct of the kind specified in that provision and its other statutory elements are separately required by section 159 StGB.

In depth: typical examples →
03

Gift to relatives: examine the purpose and timing of the transfer.

Transfers to close relatives in the crisis are in practice frequently treated as concealment. From a legal perspective it must be examined whether the transaction was a regular maintenance payment, performance of an existing liability or an actual gratuitous diminution of assets.

The timing of the transfer, its proportion to total assets and the economic background determine whether the threshold of section 156 StGB is crossed. Here too the question of intent is central.

In depth: typical examples →
04

Amount of damage disputed: examine the 300,000 euro threshold.

Section 156(1) StGB provides for imprisonment from six months to five years. Subsection (2) provides for imprisonment from one to ten years if the offence causes damage exceeding 300,000 euro. This threshold is not met by damage of exactly 300,000 euro. The defence must therefore examine the calculation basis and the amount of damage closely.

The defence should systematically question the methodology and basis of the damage calculation and where appropriate introduce its own calculations and expert assessments.

In depth: penalty and qualification →

Elements of section 156 StGB

Section 156 StGB applies to a person who conceals, removes, alienates or damages a component of their assets, asserts or acknowledges a non-existent liability or otherwise reduces their assets in reality or apparently, and thereby frustrates or diminishes the satisfaction of their creditors or at least of one of them.

Both the reduction of assets and the frustration or diminution of creditor satisfaction must be covered by intent. It is sufficient that the perpetrator seriously considers both consequences possible and accepts them. Instead, Section 159 StGB requires gross negligence and, separately, conduct of the kind specified in that provision under its statutory conditions.

The suitable perpetrator is the debtor. The conduct can be committed in the crisis as well as before the crisis sets in, provided that the intent is aimed at harming creditors.

Typical examples

Classic constellations are the concealment of assets, for instance through transfer to nominees, the asserting of non-existent liabilities to favour third parties, and gratuitous transfers to close relatives in the crisis.

Selling components of the assets below value or acknowledging fictitious claims also fulfils the offence. What is always decisive is that the assets are reduced in reality or apparently and that creditor satisfaction suffers as a result.

Examination of the consideration, the basis of the claim, and its effect on creditor satisfaction is required for a transaction. Distinction must be made between discharging a genuine liability and an actual or apparent reduction of assets. Section 158 StGB may apply if an insolvent debtor thereby favours one creditor to the detriment of others. Criminal liability is not excluded by an economic rationale alone.

Penalty and qualification

Imprisonment from six months to five years is the penalty for the basic offence under section 156(1) StGB. Imprisonment from one to ten years is provided for by subsection (2) if the offence causes damage exceeding 300,000 euro. Exactly 300,000 euro is insufficient for this aggravated offence. The shortfall in creditor satisfaction caused by the offence is the relevant damage.

Whether the damage calculation rests on reliable facts and sound valuations is examined by the defence. The amount of damage does not support the aggravated offence under section 156(2) StGB if damage exceeding 300,000 euro cannot be proved. A more favourable classification is not guaranteed by a careful calculation.

Harm to another debtor's creditors is the subject of Section 157 StGB, where a third party, without the debtor's agreement, interferes with the debtor's assets or asserts a non-existent right against them and thereby impairs creditor satisfaction. A debtor favouring one creditor after becoming unable to pay, to the detriment of at least one other creditor, is the concern of Section 158 StGB. Grossly negligent conduct of the kind specified in that provision is separately addressed by Section 159 StGB.

Intent and amount of damage are the key points. Under section 156 StGB the question of intent decides whether the offence applies, while the amount of damage decides whether the qualification threshold is crossed. A systematic preparation of both levels is the most important foundation of the defence.

Frequently asked questions

What you need to know about section 156 StGB.

What does fraudulent bankruptcy mean? +

Fraudulent bankruptcy is the intentional diminution or concealment of assets with the aim of preventing one or several creditors from obtaining satisfaction. The focus lies on the targeted removal of assets from creditor access.

What penalty does section 156 StGB carry? +

Imprisonment from six months to five years is the penalty under Section 156(1) StGB. The sentencing range under subsection (2) is one to ten years if the offence causes damage exceeding 300,000 euro. Exactly 300,000 euro is insufficient to meet that threshold.

What distinguishes section 156 from section 159 StGB? +

Intent covering the reduction of assets and the impairment of creditor satisfaction is required by Section 156 StGB. Gross negligence in conduct of the kind specified in that provision and its other statutory elements is required by Section 159 StGB. Liability under section 159 is therefore not automatically established by a lack of intent under section 156.

Are gifts to relatives always punishable? +

The assessment of gifts to relatives must examine the reduction of assets, the effect on creditor satisfaction, and intent. No general exemption for minor gifts is contained in Section 156 StGB. For maintenance payments, the first question is whether a genuine obligation is discharged, and preferential treatment under section 158 StGB must be examined separately.

When is the 300,000 euro qualification threshold reached? +

Damage exceeding 300,000 euro caused by the offence is required for the aggravated offence under section 156(2) StGB. The amount by which creditor satisfaction is frustrated or diminished constitutes the relevant sum. Exactly 300,000 euro does not meet this threshold.

What role do avoidance actions in insolvency play? +

Avoidance actions under the Insolvency Code are a civil-law instrument and differ from criminal proceedings under section 156 StGB. They can however provide indications of possible asset shifts and trigger criminal investigations.

Related topics

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Grossly negligent impairment of creditor interests section 159 StGB

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What to do after a criminal complaint in Austria

The first steps when criminal proceedings are initiated against you.

Topics
section 156 StGBfraudulent bankruptcydiminution of assetscreditor harmbusiness criminal lawdefence

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