Hamburg District Court

Implementation of consumer insolvency proceedings

Prerequisites

• You are insolvent and can no longer pay your debts.
• You have already tried to reach an out-of-court solution with your creditors. This attempt has demonstrably failed.
• The failure of your attempt to reach an out-of-court settlement occurred no more than 6 months ago at the time you applied for consumer insolvency proceedings.
• You are a natural person (private individual) who is to be understood as a consumer.
• You are not self-employed.
• Please use the prescribed form to apply.

Under certain conditions, you can also apply as a former self-employed person:

• You live in manageable financial circumstances
• You have fewer than 20 creditors
• There are no claims against you arising from the employment relationships of your former employees

Documents required

• fully completed application form "Insolvency application / opening proceedings (consumer insolvency)" including application for discharge of residual debt
• Certificate of failure of the out-of-court settlement attempt
• asset overview
• inventory of assets
• list of creditors and claims
• debt settlement plan for the court proceedings
• declarations of completeness

If requested by the insolvency court, you may have to submit a copy of the debt settlement plan and the asset overview for each of the creditors.

Please note

If your creditors reject your debt plan and the bankruptcy court also considers it hopeless, it can still open bankruptcy proceedings and allow you to pay the legal costs later. This decision is at the discretion of the bankruptcy court.

If you apply for consumer insolvency proceedings yourself, this is your own application. Your creditors can also apply for consumer insolvency proceedings to be opened over your assets. This is then a third-party application. If you have not yet filed your own insolvency application in the case of a third-party application, you will be given the opportunity to attempt to settle your debts and file your own insolvency application. You can only apply for and receive discharge of residual debt if you file your own application for insolvency proceedings to be opened.

Deadlines

The failure of your out-of-court debt settlement attempt must have occurred no more than 6 months before the insolvency application is received by the insolvency court.

Procedure

• If necessary, contact a lawyer, tax office or debt counseling service. They can advise you and support you in the implementation.
• You try to reach an out-of-court settlement with your creditors. If the settlement fails, you can apply for consumer insolvency proceedings.
• You fill out the official form, attach the necessary documents and send the original by post to the insolvency court. Keep a copy for yourself.
• Electronic submission is only possible if the application is accompanied by a qualified electronic signature. This is usually only the case if, for example, a law firm submits the application for you.
• The insolvency court will examine your application and request any missing documents or information from you.
• If necessary, the insolvency court will take protective measures. This means that no one can access your assets to collect debts.
• If necessary, the insolvency court will initiate a debt settlement plan procedure. It will create a payment plan that determines how much you can pay back over the next few years. Your creditors can decide whether to accept the proposal. The insolvency court will decide on the basis of this feedback whether the debt settlement will be carried out. Your insolvency application will be suspended during this time. If no agreement can be reached, the insolvency proceedings will continue.
• The insolvency court checks whether you have enough assets (mass) to cover the costs of the proceedings.
• If there is not enough assets, your application will be rejected. No bankruptcy proceedings will be initiated and you will have to find alternative solutions to your financial problems.
• If the insolvency court finds sufficient assets, it opens consumer insolvency proceedings.
• The bankruptcy court will create a debt settlement plan. This plan will determine how much you will have to pay back over the next 3-6 years based on your disposable income.
• You regularly pay a fixed amount to your insolvency administrator, who distributes the money among your creditors.
• Once you have fulfilled the plan, you can apply for debt relief.
• If debt relief is approved, your remaining debts will be forgiven.

Processing time

The processing time depends on the individual case and can take up to several months.

Fees

There are procedural costs. The amount of the costs varies depending on the individual case and depends on the value of your assets to be distributed and the expenses incurred.




If you commission a law firm, tax office or debt counseling agency to assist you in consumer insolvency proceedings, additional costs may be incurred.

Legal remedies

Immediate appeal

Legal basis

Court Costs Act (GKG)

https://www.gesetze-im-internet.de/gkg_2004/


§ 304 - 311 Insolvency Code (InsO)

https://www.gesetze-im-internet.de/inso/__304.html