Can I file for bankruptcy as a private individual?
December 13, 2022 | 40,00 EUR | answered by Erwin Hausdorf
Dear Attorney specializing in Insolvency Law,
My name is Sofia Krause and I am currently facing a difficult financial situation. Due to unexpected unemployment and health problems, I am struggling to manage my debts and do not know how to cope with them.
I have heard that companies can file for insolvency, but does that also apply to individuals like me? I am very worried about what will happen if I am unable to repay my debts.
Could you please explain to me if and how I can file for insolvency as an individual? Are there specific requirements that I need to meet? What would be the impact of insolvency on my financial situation and my life in general?
I am truly concerned and hope that you can help me gain clarity on my options in this difficult situation. Thank you in advance for your support and guidance.
Sincerely,
Sofia Krause
Dear Mrs. Krause,
Thank you for your message and your trust in my expertise as a bankruptcy lawyer. I understand that you are in a difficult financial situation and are worried about how to deal with your debts. I would like to help you to gain clarity about your options.
Yes, it is indeed possible to file for bankruptcy as an individual. In Germany, the Insolvency Code (InsO) regulates both the insolvency of companies and private individuals. Private insolvency is referred to as consumer insolvency proceedings and offers indebted individuals the opportunity to rid themselves of their debts and start fresh financially.
To file for insolvency as an individual, certain requirements must be met. Firstly, you must be insolvent, meaning you are unable to pay your debts. Additionally, you must attempt an out-of-court settlement procedure to reach an agreement with your creditors on debt regulation. If this procedure fails, you can apply for the initiation of insolvency proceedings at the competent insolvency court.
Bankruptcy has various implications for your financial situation and your life in general. During the insolvency proceedings, you are required to disclose your assets and contribute a portion of it to the insolvency estate. Your debts will be managed by an insolvency administrator who will try to achieve a fair distribution of the available assets with your creditors. After a period of good conduct, usually six years, you will be discharged from your remaining debts.
It is important to emphasize that bankruptcy is a complex process and legal advice should be sought. As a bankruptcy lawyer, I am happy to assist you in analyzing your individual situation and helping you with the filing and handling of the insolvency proceedings.
I hope this information is helpful to you and I am available for further questions or personal consultation.
Best regards,
Erwin Hausdorf, Bankruptcy Lawyer
