Monika , 29 years old, was a full-time employee at a large fashion chain that recently filed for bankruptcy. Over 1,000 employees were laid off, including Monika. The company was unable to pay her full salary, and the bankruptcy benefit she is now entitled to is still pending.

Monika's financial situation was strained from the start, as her income was often just enough to make ends meet. Her family and friends were also unable to support her, and the sudden unemployment made things even worse. She felt lost and didn't know how to pay her bills.

What is insolvency benefit?

Insolvency benefit is a state benefit that employees receive when their employer is insolvent. It is paid for a maximum of three months and covers the back wages that the insolvent employer was no longer able to pay. It can be applied for at the employment office, but it can take several weeks before it is paid out. For Monika, this waiting period was particularly stressful because she had no savings.

Debt counseling as a rescue

In her desperation, Monika sought help from the SIC Debtor Insolvency Center in Leinfelden-Echterdingen. There she met Mr. Seelig, who gave her comprehensive advice and found a solution for her financial situation. Together with Mr. Seelig, she was able to reach an out-of-court settlement with two major creditors. Instead of repaying the debt in full, she only had to make a one-off payment that was only a fraction of the original amount of the debt.

A budget for the future

To ensure that Monika did not fall into debt again, Mr. Seelig created a detailed budget for her. This plan helped her to better control her monthly expenses and set priorities. This allowed her to structure her financial obligations while regaining a sense of security.

Thanks to this support, Monika was able to overcome her psychological problems, such as insomnia, headaches and irritability. She now has hope for a better future.