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An insolvency procedure is (simply put) a legal procedure that a debtor can apply for if he has long-term financial problems. Upon application to the responsible district court, a procedure is opened that includes all debts and all assets and carries out debt relief with the help of an administrator appointed by the court. This procedure is subject to conditions and cooperation, but ultimately results in "debt relief" so that a new financial start is possible for the person affected. We would be happy to explain the possibilities and limitations in detail in the free initial consultation.

In principle, yes. However, there must be a financial situation that justifies such a procedure, ie current income and existing assets are no longer sufficient to meet payment obligations (over-indebtedness). The debts must also be higher than the costs of the procedure. An unpaid fitness membership alone usually does not meet this requirement.

• current income certificate(s) such as wage/salary certificate, approval certificate, pension certificate, allowance, etc. If you have multiple incomes, all income certificates/certificates are required (e.g. for supplementary benefits ALGII)
• possible child benefit notice
• all reminders and enforcement notices (yellow letters)
• Evidence of unpaid invoices
• Reminders, debt collection letters, letters from lawyers, etc.

NOTE: These documents do not have to be pre-sorted, we understand if you are overwhelmed by the situation and will open/sort your letters for you.

Yes. On the one hand, there is the consumer insolvency procedure and on the other hand, there is the standard insolvency procedure. Both procedures are identical in that they both involve debt relief and debt forgiveness.

1. The consumer insolvency procedure (VI) applies to all dependent workers (workers, employees, pensioners, unemployed, etc.) but also to former self-employed people who have fewer than 19 creditors. In this procedure, it is legally required that, before the application is submitted, a recognized and approved insolvency advice center attempts to reach an out-of-court settlement with the creditors and, if this fails, issues a so-called negative certificate for the specific case. We are such a body and can issue this certificate.
2. The standard insolvency procedure (RI) is a procedure for self-employed persons and freelancers who are currently maintaining their self-employment or for former self-employed persons who have claims from employment relationships of former employees or more than 18 creditors. In this procedure, it is not mandatory to involve an insolvency advisory center, but our experience shows that by involving one (our) advisory center, the chances of success are higher and, above all, mistakes are avoided that could lead to the failure of the procedure.

The law stipulates that an application for consumer insolvency must always be preceded by an attempt to reach an out-of-court settlement with all creditors by a recognized insolvency counseling agency. This means that the counseling agency must try to reach an agreement with all creditors. The basis of the debt settlement plan to be drawn up is the debtor's attachable income and assets, possibly also supplemented by voluntary payments.

If the application for consumer insolvency, supplemented by applications for discharge of residual debt and deferral of procedural costs, has been submitted to the court, the first step is to check whether all information and attachments are complete. The insolvency judge will then decide on the opening of the proceedings (in the "normal" case, a so-called opening decision will be made).

In the course of this, the court appoints an administrator/trustee who is subsequently the responsible contact person, who is also tasked with the realization of any assets that may exist, to whom the debtor is obliged to provide information and to be accountable, who reports to the court during the good conduct phase that follows, who ultimately also prepares the final report and thus enables the court to decide on the discharge of residual debt (debt forgiveness).

Yes. Insolvency proceedings incur costs on the part of the court (court and procedural costs) and costs for the administrator/trustee. As a precaution, an application for a deferral of costs should be made in case the insolvency estate is not sufficient to cover these costs.

Since January 2021, consumer insolvency proceedings only take 3 years instead of the previous 6 years.

We can provide you with forms that you can use to request information from Schufa, other credit agencies, the debtors' register and bailiffs. However, you must make the enquiry from the bailiffs. We will advise you on how best to organize this. Simply speak to us about it during the consultation.

Of course! Simply fill out the pre-made form on our homepage under the item "P-Account" and you will receive your certificate within 3-4 working days.

SIC SCHULDNER-INSOLVENZ-CENTRUM EV

President: W. Seelig

Hauptstr. 115

D-70771 L.-Echterdingen (near Stuttgart Airport)

Tel.: +49 (0)711-933 42 115

Fax: 49 (0)711- 46914839

WhatsApp: 015732478936