Consumer insolvency (Verbraucherinsolvenz) is one possible legal solution for certain situations. A debt advice service (Schuldnerberatung) can help you check what options are available in your case.
Key points
- Not everyone with debts needs insolvency proceedings. Agreements with creditors are often possible too.
- Before applying, you need to attempt an out-of-court agreement with your creditors (außergerichtlicher Einigungsversuch). A suitable organisation, such as a recognised debt advice service (Schuldnerberatung), certifies this attempt.
- The process may end with a discharge of remaining debts (Restschuldbefreiung): remaining debts are then generally written off. The usual period for this is 3 years.
- Certain debts, such as criminal fines (Geldstrafen) or maintenance arrears resulting from a breach of the duty to pay, may be excluded from the discharge of remaining debts (Restschuldbefreiung).
- Debt problem
- Advice
- Attempt to reach an out-of-court agreement with creditors (außergerichtlicher Einigungsversuch)
- If applicable, insolvency proceedings (Insolvenzverfahren) at the insolvency court (Insolvenzgericht)
- If applicable, discharge of remaining debts (Restschuldbefreiung)
It reviews the application, opens the proceedings and appoints a trustee (Treuhänder) or insolvency administrator (Insolvenzverwalter).
They manage the income and assets that can be seized and distribute them to creditors.
During the proceedings, you have duties to cooperate and provide information (Mitwirkungs- und Auskunftspflichten), for example if you move home or start a new job. The advice service will explain what applies to you.
MeaNext provides general information about debt, payment reminders (Mahnungen), garnishment (Pfändung) and financial problems. This information does not replace individual debt, legal or financial advice. Deadlines, contracts, types of claims and personal circumstances may be crucial in your particular case.
Last reviewed by a specialist: 09/10/2026
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