When can I incur new debts after insolvency?
August 24, 2023 | 40,00 EUR | answered by Wanda Hartmann
Dear Insolvency Lawyer,
My name is Renate Zimmermann and I am currently in an insolvency procedure. I have already officially declared my debts and am working closely with my insolvency administrator to resolve my financial situation. However, I am wondering when I can start incurring new debts after the completion of the insolvency process.
My concerns stem from the fact that in the past, I fell into insolvency due to uncontrolled debts and now I want to ensure that I do not end up in a similar financial situation again. At the same time, it may be necessary to take on debt again in the future, for example for major purchases or investments.
Therefore, I am interested to know if there is a specific waiting period after insolvency before I can incur new debts, or if there are certain conditions that must be met to become creditworthy again. I want to make sure that I do not make any mistakes and build my financial fresh start on a solid foundation.
Can you tell me specifically when I can start incurring new debts after the completion of the insolvency process? Are there certain steps I need to take beforehand to improve my creditworthiness? Or are there perhaps alternatives to taking on new debts that I should consider?
Thank you in advance for your help and support.
Sincerely,
Renate Zimmermann
Dear Mrs. Zimmermann,
Thank you for your inquiry regarding the possibility of being able to incur new debts after the completion of the insolvency proceedings. It is understandable that you are thinking about how to establish your financial fresh start on a solid basis, in order to avoid getting into a similar difficult situation again.
In general, there is no set waiting period after the completion of insolvency proceedings before you can incur new debts. However, it may be that banks and other lenders are initially skeptical of granting you a loan due to your past insolvency. Your creditworthiness may be affected by the insolvency, which could make it more difficult to obtain a loan.
To improve your creditworthiness and increase your creditworthiness, there are steps you can take. First, make sure to fulfill your financial obligations properly and on time, for example by making timely payments for rent, bills, and other loans. A positive payment history can help increase your creditworthiness.
Furthermore, you can work on cleaning up your SCHUFA entries. Regularly check your SCHUFA and have incorrect entries corrected. A clean SCHUFA can improve your creditworthiness.
Instead of taking on new debts, you can also consider saving money and financing larger purchases or investments out of your own pocket. This way, you avoid new uncertain debts and have more control over your financial situation.
It is advisable to consult with a financial advisor or a specialized insolvency lawyer before taking on new debts, in order to discuss your individual case and develop the best options for your financial fresh start.
I hope this information helps you and supports you on your path to a solid financial fresh start. If you have any further questions, I am happy to assist.
Sincerely,
Wanda Hartmann, Insolvency Lawyer
