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Apply for personal insolvency

If the attempt to reach an agreement fails, you as the debtor can apply for consumer insolvency proceedings. This is also known as judicial debt settlement proceedings. The court examines the prospects of success. If the insolvency court is convinced that the insolvency proceedings have a chance of success, it will submit a judicial debt settlement plan to all creditors. Your creditors then have 4 weeks to object to the debt settlement plan. If the plan is accepted by at least half of the creditors, the court can replace the consent of the other creditors (who have objected) at your request. To summarize: a compulsory insolvency court settlement.

The application form for consumer insolvency proceedings is not easy to complete. However, we will support you and submit the application to the court on your behalf.

Opening of insolvency proceedings

The third phase of the proceedings is the opening of insolvency proceedings. This is only opened if the court debt settlement plan is rejected by the creditors. If insolvency proceedings are opened, a so-called trustee is appointed from this point onwards. Their main task is to list the creditors' individual claims and manage all of the debtor's assets.

The so-called "good conduct period"begins in the final stage of the proceedings . During this time, it is the trustee's task to distribute your attachable income to the creditors. This is done with the help of a fixed quota according to the insolvency table. It is important to note that not all of your income may be seized. Rather, you must retain a certain proportion for your own living expenses.

Once the good conduct period is over, a new court hearing is held between the creditors and debtors at the end of the insolvency proceedings. This is the last opportunity for creditors to raise objections. As a rule, however, you do not have to attend.

If there are no objections from creditors, the insolvency proceedings are concluded and you are finally released from your debts (residual debt discharge).

This means that there is no longer any legal possibility for your creditors to enforce their claim.