Support and advice

Consumer insolvency is the insolvency procedure for people who are not self-employed.

Consumer insolvency proceedings, often also referred to as personal insolvency, are available to people who are not self-employed. These are, for example, employees, the unemployed and pensioners.

In contrast, standard insolvency is normally used when the debtor is a company or business.

Under certain circumstances, a formerly self-employed person can also file for personal insolvency. This is usually possible if the financial circumstances are manageable and/or there are no liabilities from employment.

This means, for example, that if there are fewer than 19 creditors and if there are no outstanding claims from employees or liabilities arising from employment relationships (unpaid wages, payroll taxes, and social security contributions). If there are more than 18 creditors or liabilities arising from employment relationships, standard insolvency proceedings must generally be filed.

Please also note our information on the subject of Estate insolvency!