Now begins the phase for the debtor, where they hopefully can start a new life free from all debts, called the “good behavior period” or “discharge of residual debt phase.” In order to achieve this legally provided debt relief, known as “restschuldbefreiung,” the debtor must fulfill various obligations.
These obligations mainly include the following:
They must engage in appropriate employment or, if unemployed, make efforts to find suitable employment.
They must surrender half of any assets they acquire during this period, such as through inheritance or gifts. Lottery winnings must be fully surrendered.
They must promptly notify any change of residence or workplace.
They may only make payments to the insolvency creditors through the insolvency administrator (or trustee) and must not provide any preferential treatment to any creditor.
If the debtor fulfills these obligations, they will be granted restschuldbefreiung after 3 years (refer to: Duration of consumer insolvency proceedings) from the opening of the formal insolvency proceedings. It is strongly advised for the debtor to fulfill these obligations properly throughout the entire duration of the good behavior period to secure the granting of debt discharge. This particularly includes making efforts to find new employment if unemployed and responding to inquiries from the trustee or the insolvency court.
If you have fulfilled the aforementioned obligations, the insolvency court will grant you debt discharge, and the path to a carefree, debt-free future will be open to you!