Filing chapter 7 bankruptcy on my own -Bankruptcy filing: find out more

Bankruptcy filing: find out more

If debtors become insolvent, the next step is usually that they report insolvent at the district court.

If debtors become insolvent, the next step is usually that they report insolvent at the district court.

To go bankrupt, in principle means the inability to pay, but the personal bankruptcy indebted individuals allow a financial restart– BankruptcyHQ.

One of the prerequisites here is that the financial circumstances must be manageable. Specifically, this means that the debtor must have less than 20 creditors at the time of the application so that the application for personal bankruptcy can take place.

It is also important that an attempt was made in advance to negotiate an out-of-court settlement with the creditors. If this attempt fails, this must be confirmed in writing by a lawyer or a recognized debt counseling service. Only then can a personal bankruptcy be registered.

However, the insolvency proceedings will not be initiated immediately. An attempt is made to avoid personal insolvency through a judicial settlement procedure. If this is unsuccessful and the creditors do not agree, then the actual private insolvency proceedings are initiated.

The most important thing about “going bankrupt”

  1. If a person is insolvent and therefore has to file for bankruptcy, it goes bankrupt.
  2. If a person has gone bankrupt, they go through a bankruptcy procedure, through which they should obtain debt freedom.
  3. A person shall be regarded as insolvent until after successfully passing through the insolvency proceedings, the remaining debts have been made.

What does “going bankrupt” mean?

What does it mean to go bankrupt and what are the consequences?

What does it mean to go bankrupt and what are the consequences?

Those who have money problems are often afraid that debts will arise and that they can no longer be settled in the long term. But not only the creditor debt cannot be paid, but other costs such as the cost of living can also then no longer be met. Insolvency is often the result.

But when is one insolvent? Anyone who realizes that bills can no longer be paid or permanently in the minus because the expenditure exceeds the income has financial problems. Unemployment, divorce, cost increases or illness are just a few reasons why a person may be in need of money.

Then, when the first creditors sign up and collect their outstanding debts because bills have not been settled, swift action is needed. Because debt incurred this must be stopped as soon as possible so that the mountain of debt does not continue to grow. In this case, an out-of-court settlement attempt can be reached with the creditors. Here are the following solutions for debt reduction in question:

  • Agreement on installment payment: The debts are paid in full in installments.
  • Debt settlement: Part of the debt is waived, the other is paid off.
  • Debt relief: debts are waived in full.

Insolvency: If no agreement can be reached with the creditor or if the debtor is unable to meet the claims, only the private insolvency remains. In this case, a person is no longer solvent and thus goes bankrupt. What is the best way for you to get out of debt?

Where do you register as insolvent?

When debtors go bankrupt, they also ask themselves, among other things, where they actually have to file for bankruptcy. The local jurisdiction is regulated in § 3 of the Insolvency Act (InsO). Accordingly, the private insolvency application must be submitted in writing to the district court responsible for your place of residence:

Only the insolvency court, in whose district the debtor has its general place of jurisdiction, is locally responsible.

What happens if you are insolvent?

On the one hand, insolvency proceedings are about obtaining a residual debt exemption for the person concerned. On the other hand, the claims of the creditors should be maximally satisfied. For this, the insolvent estate is formed from the attachable assets and from the income of a debtor. A bankruptcy trustee is appointed to distribute this money evenly among the creditors.

This is followed by the conduct phase in which the debtor has to comply with certain conditions . Because only then, after the release of residual debt can be granted.

How long is one insolvent?

Whether privately or independently – who goes bankrupt, wonders: How long will I be insolvent?

As soon as those affected go bankrupt , they ask themselves how long this condition will last and when they will no longer be considered bankrupt. As a rule, personal bankruptcy should not take more than six years . However, the duration of insolvency proceedings can also be shortened .

  • Shortening to three years : If a debtor is able to reimburse at least 35 percent of the total debt and the costs of the proceedings within three years, the residual debt exemption can be granted after this period.
  • Shortening to five years : If the debtor can pay all costs after five years, he will be released from the remaining debts after this period.

Can you go bankrupt several times?

Lawmakers do not dictate how often a person may go bankrupt in their lifetime. However, after a debt waiver or after a failed bankruptcy proceedings, a certain period must be observed before the bankruptcy may be filed again.

  • If a debt waiver has been granted , insolvency proceedings may not be opened in the following ten years.
  • If the debt waiver was denied , a personal bankruptcy can be filed again only after three or five years. Crucial here is why it came to the refusal of debt relief

Basically, one of the goals of insolvency proceedings is that those affected learn from their mistakes and in the future better manage their money and control their financial situation . However, this can not always be avoided, since unforeseeable events can always lead to a renewed emergence of debt .