Insolvency
EVERYTHING YOU NEED TO KNOW ABOUT PRIVATE INSOLVENCY PROCEEDINGS
The personal insolvency proceedings end after three years of being debt-free. Contact us today for a free, no-obligation consultation! Personal insolvency is an option provided by the Insolvency Code to become debt-free within three years. During the insolvency proceedings, the debtor retains at least an allowance of €1,340.00 per month, which they can freely dispose of. This allowance is increased if you have maintenance obligations such as a spouse and/or children. If your income is above the exempt amount, the attachable portion is transferred and benefits the creditors. Private insolvency proceedings are open to all debtors who are not or have not been self-employed. Formerly self-employed debtors have the option of using consumer insolvency proceedings if they have fewer than 20 creditors at the time of filing for insolvency and there are no claims from former employment relationships. If you have fulfilled your obligations, you will receive residual debt discharge after three years. This means that from this moment on you are free of debt again and can lead a carefree life.
Prerequisites
Important to know
- Debt-free in 3 years:
If you have gone through the private insolvency proceedings, you will be debt-free after three years. - Garnishment allowance:
The basic tax-free allowance available to everyone is currently €1,340.00. If you have children or are married, this will be increased. Find out more here. - Schufa:
At the end of the three-year insolvency period, your credit rating will be positive again six months later and you will be able to enter into all kinds of contracts again! Find out more here. - Obligations in insolvency:
The most important obligation during insolvency is to go to work in order to repay your creditors as much of the money due to you as possible. Find out more here.
these are further steps
Further steps
- 1. contact
Contact us today and arrange an individual consultation appointment as soon as possible! - 2. free initial consultation
In our free initial consultation, you will get to know us and the debt advisor responsible for you, who will accompany you on your way. Please bring all available documents from your creditors with you to the meeting so that we can get an overview of your financial situation. Your advisor will then show you the best way for you to get out of debt and explain the costs you will incur. - 3. contacting the creditors
If you decide to get out of debt with us, we will first contact all your creditors to find out the current status of your debts. We will also present your power of attorney and will be your sole contact for your debt matters from this point on. - 4. list of all liabilities
Once we have contacted all your creditors, we will draw up a list of your debts. We need this to carry out the mandatory out-of-court attempt to settle the debt in private insolvency proceedings. - 5. out-of-court settlement attempt
Put simply, this is an attempt to negotiate with creditors by offering them only the attachable portion of your net income. If not all creditors agree to this proposal, an application for insolvency can be filed with the competent local court. - 6. date of signature of insolvency petition
As a final step after the failure of the out-of-court settlement attempt, we will arrange an appointment with you on site to sign the insolvency petition. Our lawyer will go through the entire insolvency application with you and explain everything to you in detail in a personal meeting. - 7. opening of insolvency proceedings
Insolvency proceedings are opened two to four weeks after the insolvency application is filed with the competent local court and the 3-year period begins. - 8. discharge of residual debt
At the end of the 3 years, all outstanding debts will be waived and you will be debt-free again!