Detailed description
To begin insolvency proceedings, the costs incurred must be covered. These costs include, for example, court fees and the insolvency administrator's fees. Therefore, if you plan to file for insolvency, it is important that you have sufficient funds to cover these costs.
If you do not have enough money and no one else can give you an advance, you can request a deferral of the legal costs.
No court fees will be charged until the remaining debts are discharged. The state treasury will cover the costs of insolvency administration.
The deferral is granted separately for each stage of the proceedings. It may also include legal fees if the court deems this necessary.
You do not have to make any payments during the deferral period. However, the deferred procedural costs must be repaid from the insolvency estate during the insolvency proceedings and until the end of the assignment period.
If, after the granting of residual debt relief, the procedural costs have not been repaid to the state treasury, or have not been fully repaid, and you cannot pay the costs in one lump sum, you may be granted installment payments over a period of up to 48 months. The amount of the installments depends on your financial circumstances. The insolvency court determines the amount of the installments.
If your financial circumstances change, you must notify the court immediately. The court will then adjust your installments to reflect your new financial situation. If you do not notify the court, the deferral may be revoked. The costs of the proceedings must then be paid immediately and in full. Payment by installments is no longer possible.