Personal bankruptcy - debt-free in just three years | Chances for a fresh start
Overview of personal insolvency
- Good news: short duration
- What happens in the event of personal bankruptcy?
- The process of personal insolvency – step by step
- Preparing the insolvency application – Important points
- Personal bankruptcy and SCHUFA – what are the consequences?
- Advice on personal insolvency – your advantages with us
Good news about the duration of personal insolvency!
Since the reform of insolvency law at the end of 2020, you can be debt-free after just 3 years through personal insolvency . Previously, the period was up to 6 years.
How does it work? During the three years, a portion of your income - the attachable portion - is transferred to a so-called trustee , who pays off your debts. There is no minimum rate that you have to pay in order to receive the residual debt relief .
Important to note:
- Maintenance debts and tax debts are excluded from the discharge of residual debt.
>> Request non-binding advice on personal insolvency now
What happens in the event of personal bankruptcy?
From the moment you commission our debt counseling service , you will no longer have to make any payments to your creditors (e.g. loan installments). According to the law, you are entitled to a minimum subsistence level in the event of personal insolvency , whereby only amounts above the seizure exemption limit will be seized. This depends on your personal life situation.
Advantage of personal bankruptcy:
After just three years and compliance with the agreements, you are legally considered debt-free .
The process of personal insolvency – step by step:
- Decision to file for insolvency (lead time approx. 2 months)
- application to the insolvency court
- opening of insolvency proceedings
- appointment of an insolvency administrator who represents the creditors
- Submitting a financial statement (disclosure of your financial circumstances)
- Transfer of the attachable income to the insolvency administrator
- Completion of the procedure after about 3 years and discharge of residual debt
>> Enquire now and achieve debt freedom
Preparing the insolvency application – Important points
- List debts: Create a complete list of your debts and creditors to ensure everything is taken into account in the bankruptcy process.
- Out-of-court debt settlement plan: Try to reach an agreement with creditors before filing for bankruptcy.
- Disclose assets: Disclosure of all income and assets is mandatory.
- Legal support: A lawyer or debt counseling service can support you in the process.
- Observe deadlines: Make sure that all deadlines in the process are met to avoid delays.
Learn more about the insolvency application – Click now
Personal bankruptcy and SCHUFA – what are the consequences?
A personal bankruptcy is recorded in your SCHUFA file and can remain for several years, which has a negative impact on your credit rating. This particularly affects:
- Apartment search: Landlords often do not like to see negative SCHUFA entries.
- Contract conclusions: Providers (e.g. telephone providers) often check your SCHUFA credit rating before concluding a contract.
- Extended period: The SCHUFA entries remain beyond the discharge of residual debt (max. three years).
Use personal insolvency as an opportunity – How to improve your financial situation
Advice on personal insolvency – your advantages with us
The SIC Debtor Insolvency Center e. V. is at your side. With our years of experience and certified consultants, we support you on your way through personal insolvency . We offer:
- Professional assessment of whether insolvency is necessary
- Short waiting times
- Good accessibility by phone / Whatsapp
- Support in processing your mail
- Support from other partners included: Whether specialist lawyer or professional accounting - everything from a single source without additional costs
- Forms, checklists and applications . We review your documents.
Request advice now – We will help you become debt-free
Important downloads and forms
Here you will find all necessary downloads and forms on the subject of insolvency:
- attachment table
- insolvency checklist
- Admission form / form (for initial consultation)
- budget
frequently asked questions about insolvency
Personal Insolvency - FAQ
How much does personal bankruptcy cost me: from lawyers to advice?
The costs for private insolvency can vary depending on the scope and duration of the procedure. Legal and court costs, as well as costs for debt counseling and other expenses may be incurred. We recommend that you contact us in advance to find out more about the costs and financing options.
Does personal insolvency affect marriage and partnership?
It is important for you to know that personal bankruptcy can affect not only the applicant but also his or her spouse. However, in principle, the spouse is not affected by the other's personal bankruptcy.
Exceptions do occur, which is why timely advice is advisable. In general, however, each person is only liable for his or her own debts. Normally, however, they are not liable for the debts of their spouse, their own children or for the debts of other people.
Can I keep my vehicle (e.g. car)?
If the car is not yet paid off and it is used as collateral for a loan, it can be surrendered as part of the bankruptcy. In this case, the car is sold and the proceeds are used to pay off the debt.
However, if the car is already fully paid for and does not have a loan as collateral, it can be kept in bankruptcy under certain circumstances. However, there are limits to this, which arise from the assets that can be seized.
There are other exceptions to the seizure rule, such as work equipment or a vehicle suitable for disabled people. If the vehicle is needed for the journey to work and there is no reasonable alternative, it may also be exempt from seizure under certain circumstances.
It is therefore advisable to seek advice from a specialist lawyer or debt counseling agency in advance to clarify whether the vehicle can be kept in the event of insolvency.
How do I protect my finances during personal bankruptcy?
During the insolvency proceedings, it is important to continue to keep a close eye on your finances and to stick to the plan drawn up by the insolvency court.
This plan specifies how much money you have available each month and how much of it will be paid to creditors. It is also important to keep a detailed list of all income and expenses and report them to the bankruptcy court.
When income is seized, particularly when wages or accounts are seized, the debtor must be left with a certain amount as a minimum subsistence level. This is known as the seizure exemption amount .
What do I have to consider as a pensioner?
Pensioners can also declare personal bankruptcy. However, they must observe special regulations.
In the case of personal insolvency, the old-age pension is considered income. This means that it can also be seized. But of course only if it exceeds the seizure exemption limit.
Due to many special regulations, it is advisable to seek advice from us in advance.
Competent debt and insolvency advice in the greater Stuttgart area
Welcome to the website of the SIC Debtor Insolvency Center e. V. in Stuttgart. We are your contact for all questions about debt and insolvency. Regardless of whether you are facing insolvency proceedings privately or professionally - we will help you professionally. Discover our advisory services and initial information about your options. We are here to help you!"
About Us
Find out more about me and my team at SIC Debtor Insolvency Center e. V. Our expertise is based on personal experience and professional qualifications.
Contact us
Do you have questions about insolvency advice or do you need support? Contact us conveniently via WhatsApp, telephone or email. Our team is ready to help you. Don't hesitate to contact us!
Our partners and awards
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Known from Focus Online
Our expertise in debt counseling and insolvency administration has been recognized by Focus Online.
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BS Inso
Partner of BS Inso – Together with BS Inso, we are committed to effective solutions in insolvency consulting.
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GoldWert assessment
GoldWert Rating – Our debt settlement and insolvency services are awarded and recommended by GoldWert.
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Good Morning Germany
Partner of Guten Morgen Deutschland – We are proud to be mentioned in the well-known program for our expertise in insolvency consulting."
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German Lawyers' Association for Restructuring
Member of the German Lawyers Association for Restructuring – We work closely with the association to offer you the best solutions in insolvency advice
