What options do I have as a debtor to avoid bankruptcy?
October 8, 2023 | 40,00 EUR | answered by Emma Fischer
Dear bankruptcy lawyer,
my name is Sandra Wunderlich and I am facing a difficult financial situation. Over the past few years, my debts have been piling up, and now I am facing the threat of bankruptcy. I have already tried to restructure my finances and contact my creditors to find a solution, but so far without success.
Currently, my income is not sufficient to cover my monthly expenses, and I have already received payment demands from my creditors. I am very worried about my financial future and wondering what options I, as a debtor, have to avoid bankruptcy.
I have heard that there are various ways to avoid bankruptcy, such as initiating an out-of-court debt settlement process or applying for a bankruptcy plan. I would like to know from you what specific steps I can take to improve my financial situation and prevent an impending bankruptcy.
I hope that with your expertise and experience, you can help me and provide me with possible solutions to get out of this precarious situation. Thank you in advance for your support.
Sincerely,
Sandra Wunderlich
Dear Mrs. Wunderlich,
Thank you for your inquiry and for trusting in my expertise as a lawyer specializing in insolvency law. I am sorry to hear that you are in a difficult financial situation and facing the threat of insolvency. It is important that you take proactive steps to improve your financial situation and avoid insolvency.
First of all, it is commendable that you have already tried to restructure your finances and have contacted your creditors. These are important steps towards finding a solution. If your income is no longer sufficient to cover your monthly expenses and you have received payment demands, it is advisable to act promptly to avoid insolvency.
One way to avoid insolvency is to initiate an out-of-court debt settlement procedure. You can work together with a debt counselor or a lawyer to develop a debt settlement plan to reduce your debts and reach an agreement with your creditors. This plan may involve making installment payments or applying for a debt deferral, for example.
Another way to prevent insolvency is to apply for an insolvency plan. This is a judicial procedure in which an insolvency administrator is appointed to manage your debts and reach an agreement with your creditors. The insolvency plan may involve partially forgiving your debts or repaying a certain sum within a specified period.
It is important that you seek professional help early on and consult with an experienced lawyer specializing in insolvency law. A lawyer can help you analyze your financial situation, suggest possible solutions, and assist you in implementing them. Together, you can develop an individual plan to settle your debts and avoid insolvency.
I hope that this information is helpful to you and encourages you to take action to improve your financial situation. Do not hesitate to contact me if you have any further questions or need professional assistance. I am here to support you during this challenging time.
Sincerely,
Emma Fischer
Lawyer specializing in insolvency law
