diff --git a/apps/files_encryption/hooks/hooks.php b/apps/files_encryption/hooks/hooks.php
index 83abf3ba9d..1eb5f4c41e 100644
--- a/apps/files_encryption/hooks/hooks.php
+++ b/apps/files_encryption/hooks/hooks.php
@@ -109,21 +109,27 @@ class Hooks {
 
 			}
 
-			// Encrypt existing user files:
-			if (
-				$util->encryptAll('/' . $params['uid'] . '/' . 'files', $session->getLegacyKey(), $params['password'])
-			) {
+			// Encrypt existing user files
+			try {
+				$result = $util->encryptAll('/' . $params['uid'] . '/' . 'files', $session->getLegacyKey(), $params['password']);
+			} catch (\Exception $ex) {
+				\OCP\Util::writeLog('Encryption library', 'Initial encryption failed! Error: ' . $ex->getMessage(), \OCP\Util::FATAL);
+				$util->resetMigrationStatus();
+				\OCP\User::logout();
+				$result = false;
+			}
+
+			if ($result) {
 
 				\OC_Log::write(
 					'Encryption library', 'Encryption of existing files belonging to "' . $params['uid'] . '" completed'
 					, \OC_Log::INFO
 				);
 
+				// Register successful migration in DB
+				$util->finishMigration();
+
 			}
-
-			// Register successful migration in DB
-			$util->finishMigration();
-
 		}
 
 		return true;
diff --git a/apps/files_encryption/lib/util.php b/apps/files_encryption/lib/util.php
index ae3e2a2e15..ced4b823cf 100644
--- a/apps/files_encryption/lib/util.php
+++ b/apps/files_encryption/lib/util.php
@@ -1185,27 +1185,49 @@ class Util {
 		return $result;
 	}
 
+	/**
+	 * @brief set migration status
+	 * @param int $status
+	 * @return boolean
+	 */
+	private function setMigrationStatus($status) {
+
+		$sql = 'UPDATE `*PREFIX*encryption` SET `migration_status` = ? WHERE `uid` = ?';
+		$args = array($status, $this->userId);
+		$query = \OCP\DB::prepare($sql);
+		$manipulatedRows = $query->execute($args);
+
+		if ($manipulatedRows === 1) {
+			$result = true;
+			\OCP\Util::writeLog('Encryption library', "Migration status set to " . self::MIGRATION_OPEN, \OCP\Util::INFO);
+		} else {
+			$result = false;
+			\OCP\Util::writeLog('Encryption library', "Could not set migration status to " . self::MIGRATION_OPEN, \OCP\Util::WARN);
+		}
+
+		return $result;
+	}
+
 	/**
 	 * @brief start migration mode to initially encrypt users data
 	 * @return boolean
 	 */
 	public function beginMigration() {
 
-		$return = false;
+		$result = $this->setMigrationStatus(self::MIGRATION_IN_PROGRESS);
 
-		$sql = 'UPDATE `*PREFIX*encryption` SET `migration_status` = ? WHERE `uid` = ? and `migration_status` = ?';
-		$args = array(self::MIGRATION_IN_PROGRESS, $this->userId, self::MIGRATION_OPEN);
-		$query = \OCP\DB::prepare($sql);
-		$manipulatedRows = $query->execute($args);
-
-		if ($manipulatedRows === 1) {
-			$return = true;
+		if ($result) {
 			\OCP\Util::writeLog('Encryption library', "Start migration to encryption mode for " . $this->userId, \OCP\Util::INFO);
 		} else {
 			\OCP\Util::writeLog('Encryption library', "Could not activate migration mode for " . $this->userId . ". Probably another process already started the initial encryption", \OCP\Util::WARN);
 		}
 
-		return $return;
+		return $result;
+	}
+
+	public function resetMigrationStatus() {
+		return $this->setMigrationStatus(self::MIGRATION_OPEN);
+
 	}
 
 	/**
@@ -1213,22 +1235,15 @@ class Util {
 	 * @return boolean
 	 */
 	public function finishMigration() {
+		$result = $this->setMigrationStatus(self::MIGRATION_COMPLETED);
 
-		$return = false;
-
-		$sql = 'UPDATE `*PREFIX*encryption` SET `migration_status` = ? WHERE `uid` = ? and `migration_status` = ?';
-		$args = array(self::MIGRATION_COMPLETED, $this->userId, self::MIGRATION_IN_PROGRESS);
-		$query = \OCP\DB::prepare($sql);
-		$manipulatedRows = $query->execute($args);
-
-		if ($manipulatedRows === 1) {
-			$return = true;
+		if ($result) {
 			\OCP\Util::writeLog('Encryption library', "Finish migration successfully for " . $this->userId, \OCP\Util::INFO);
 		} else {
 			\OCP\Util::writeLog('Encryption library', "Could not deactivate migration mode for " . $this->userId, \OCP\Util::WARN);
 		}
 
-		return $return;
+		return $result;
 	}
 
 	/**