Page - 199 - in Austrian Law Journal, Volume 2/2021

ALJ 2021 From debt to discharge 199 administrator.159 Should the insolvency proceedings end with a reorganisation plan or a settlement plan, however, the creditor’s right to set-off is limited to the respective quota.160 IV. Consumer credit counselling A. Introduction to credit counselling in Austria According to § 254 (1) no. 6 IO, there is no obligation to be represented by a lawyer in insolvency proceedings; the debtor does not have to be represented at all.161 However, in debt settlement proceedings a debtor may be represented by a recognised debt counselling agency ("Schuldenberatungsstelle") according to § 192 IO, which is not permitted in other insolvency proceedings.162 In the appeal proceedings of debt settlement proceedings, representation by a recognised debt counselling agency is permitted as well, but the signature of a lawyer is required for filing the appeal to the supreme court (“Oberster Gerichtshof”, § 192 IO).163 § 267 IO provides for the recognition of debt counselling agencies; for this, all the requirements of § 267 IO must be fulfilled.164 According to § 267 (1) IO, the prerequisites for a recognition include the unpaid nature of the service, reliability, financial security, permanent establishment and up-to-date quality management. The state recognition entitles the holder to use a seal of quality, which is awarded by the competent higher regional court.165 In Austria, the common interests of the debt counselling agencies are represented by an umbrella organisation.166 This umbrella organisation unites (all) ten recognised debt counselling agencies;167 it is financed by subsidies from the government and by its activity as trustee in the proceedings for income levy.168 Only the umbrella association of debt counselling agencies may perform this function; individual debt counselling agencies are not allowed to do so due to their lack of independence.169 In 2020, the umbrella organisation was appointed as trustee in 1,205 proceedings, which corresponds to about 55% of all proceedings.170 159 Mohr, Privatinsolvenz3 Rz 238; Schneider, Privatinsolvenz3 49. 160 OGH 6 Ob 179/14p Zak 2016/279 (Nunner-Krautgasser). 161 Schneider, Privatinsolvenz3 33; Mohr, Privatinsolvenz3 Rz 104; Kodek, Insolvenzrecht2 Rz 59. 162 Mohr, Privatinsolvenz3 Rz 103; cf. Pfandl/Schmid, Insolvenzrecht 65. 163 Mohr, VbR 2021 120 (120); Pfandl/Schmid, Insolvenzrecht 65; Schneider, Privatinsolvenz3 23; Kodek, Insolvenzrecht2 Rz 62; Kodek, Privatkonkurs2 Rz 9. 164 Kodek, Privatkonkurs2 Rz 9; Pfandl/Schmid, Insolvenzrecht 65; Schneider, Privatinsolvenz3 33; Kodek, Insolvenzrecht2 Rz 60. 165 Bundesministerium für Arbeit, Soziales, Gesundheit und Konsumentenschutz, Ausweg gesucht. Schulden und Privatkonkurs (2019) 29. 166 Kodek, Insolvenzrecht2 Rz 61; Kodek, Privatkonkurs2 Rz 9; Pfandl/Schmid, Insolvenzrecht 65. 167 Pfandl/Schmid, Insolvenzrecht 65; Kodek, Privatkonkurs2 Rz 9; Kodek, Insolvenzrecht2 Rz 61. 168 Kodek, Insolvenzrecht2 Rz 61; Kodek, Privatkonkurs2 Rz 9. 169 Kodek, Insolvenzrecht2 Rz 648. 170 ASB Schuldenberatungen, Schuldenreport 22.