Judicial Plan
Insolvency plan proceedings
If the out-of-court debt settlement plan fails, the debtor can file an application to open consumer insolvency proceedings with the competent insolvency court within six months. If an out-of-court debt settlement plan achieves what is known as a head and sum majority of approvals, an application for judicial debt settlement proceedings can be submitted with the insolvency application. The court is responsible for deciding on a “court settlement”. In this case, the latest version of the debt settlement plan is declared to be the valid settlement. The debtor receives a payment plan with all the necessary details to initiate the standing orders for the settlement payments.
GOOD TO KNOW
Prerequisites
- All creditors are known
You must be absolutely sure that you know all the creditors, as only those creditors who agree to the proposal will become part of the court settlement. Otherwise, unknown creditors can seize your assets again, which can lead to the settlement failing. - Financial stability
You must be sure that you will be able to pay the agreed installments over the entire term, as the court settlement can be terminated by the creditor concerned if two installments are not paid. - Runtime
The term corresponds to the term of the out-of-court debt settlement plan. This can be individually adapted to your financial situation, but is generally no longer than three years. Of course, it is also possible to become debt-free immediately by making a one-off payment. - How much do I have to pay?
The installments of the last out-of-court debt settlement plan in which a head and sum majority could be reached are paid. - No account and salary garnishments!
>With the application for a court debt settlement plan, we will apply for the suspension of all seizure measures so that no seizures that would jeopardize the plan are possible during the term of the court proceedings. - Schufa
Unfortunately, in contrast to insolvency proceedings, your Schufa is only positive again three years after payment of the last installment.
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 the free and non-binding first appointment, you will get to know us and the debt advisor responsible for you personally. Please bring all existing creditor documents 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 out of debt and explain the costs you will incur. - 3. contacting the creditors
If you decide on debt relief with SchuldenfreiBerlin, we will first contact your creditors and request the current status of all your debts on presentation of your power of attorney. From this point on, we are your sole point of contact in order to relieve you as much as possible. - 4. list of all liabilities
Once we have contacted your creditors, we use this information to draw up a list of your debts. We need these for further negotiations. - 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 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. sending the court plan to all creditors
The creditors must comment on this within one month. If one or more creditors fail to do so, this is deemed to be a declaration of consent to the plan submitted. However, even in the event that several creditors reject the plan, the insolvency court may, at the debtor's request, convert this rejection into approval if more than half of the creditors have approved the plan and the total claims of the approving creditors also amount to more than half of the total known claims owed (so-called "head and sum majority"). - 9. formation of the court plan
If this majority of heads and totals is reached, the court plan comes into effect. The court will send you this, together with a request to make the payments specified therein. - 10. discharge of residual debt
At the end of the 3-year (or other agreed) term, all outstanding debts will be waived and you will be debt-free again!