How can I best manage my debts during insolvency proceedings?
May 26, 2023 | 40,00 EUR | answered by Emma Fischer
Dear insolvency lawyer,
My name is Heike Heinze and I am reaching out to you as I am currently in a difficult financial situation. A few months ago, I had to file for personal bankruptcy as I could no longer manage my debts on my own. Now I am faced with the question of how best to handle my debts during the insolvency process.
I am currently in the phase of good behavior and I make monthly payments to the insolvency administrator as stipulated. However, my debts continue to burden me and I am worried about how I can improve my financial situation in the long term. I am unsure whether I should explore additional sources of income or if it would be more sensible to reduce my expenses.
I would like to know what options are available to effectively manage my debts during the insolvency process. Are there specific measures I can take to become debt-free faster? For example, should I try to negotiate an out-of-court settlement with my creditors or are there other options I should consider?
I would greatly appreciate it if you could provide me with some advice on how to improve my financial situation and successfully manage my debts during the insolvency process. I look forward to your support and thank you in advance for your help.
Sincerely,
Heike Heinze
Dear Mrs. Heinze,
Thank you for your inquiry and your trust in my expertise in insolvency law. It is understandable that you are concerned about your financial situation and are looking for ways to best manage your debts during the insolvency process. Indeed, there are various measures you can take to become debt-free faster and improve your financial situation.
First and foremost, it is important that you regularly and punctually pay the specified amount to the insolvency administrator during the probationary period. This shows your creditors and the insolvency court that you are willing to repay your debts and comply with the agreed rules. Furthermore, you should carefully document all income and expenses to keep track of your financial situation.
It may be beneficial to explore additional sources of income to become debt-free faster. For example, you could take on a part-time job or look for ways to increase your income. Reducing expenses can also help you have more money available for debt repayment.
An out-of-court settlement with creditors can also be an option to resolve your debts more quickly. Here, you can try to reach an agreement with creditors where you repay a portion of the debt at once and have a portion forgiven. This can help you become debt-free faster and reduce your financial burden.
However, it is important to seek advice from an experienced insolvency law attorney before entering into an out-of-court settlement or taking other measures to ensure that your interests are adequately represented. An attorney can help you find the best solution for your individual situation and assist you in its implementation.
I hope that these suggestions will help you and support you on the path to successfully managing your debts during the insolvency process. If you have any further questions or need additional guidance, I am at your disposal.
Best regards,
Emma Fischer, Insolvency Law Attorney
