Detailed description
As a private individual – whether as a consumer or business owner – you can apply for discharge of residual debt by filing for insolvency. This independent procedure serves to free debtors from their remaining debts and provide them with the opportunity for a debt-free fresh start. To do so, you must complete the insolvency proceedings and comply with the court's requirements during the three-year period of good conduct. This applies to insolvency proceedings filed from October 1, 2020.
The granting of residual debt relief generally applies to all insolvency creditors. It applies to debts that already existed at the time the insolvency proceedings were opened and have not yet been repaid. It also applies to insolvency creditors who have not filed their claims in the insolvency proceedings.
There are claims that are not covered by the discharge of residual debt and therefore remain in force:
- Liabilities of the estate: Obligations that arose in connection with the insolvency proceedings.
- Other new debts that arose after the opening of insolvency proceedings,
- Constantly recurring obligations, for example, to pay maintenance or rent after the opening date.
- Claims arising from tortious acts, such as fines, penalties, coercive and administrative fines, and liabilities arising from intentional torts (such as bodily harm or property damage). However, creditors must state this when registering their claim.
- Arrears of statutory maintenance that the debtor has intentionally failed to pay (e.g. child support)
- Tax debts, provided that the debtor has been legally convicted of a tax crime in this context.
The discharge of residual debt can be revoked at the request of an insolvency creditor. This may be the case, for example, if you intentionally violated your obligations during the period of good conduct or intentionally or through gross negligence violated your duty to provide information or cooperate after the discharge of residual debt was granted.