Goals of personal bankruptcy


Every honest person has the opportunity to protect themselves through the bankruptcy code

  • Within 3 years upon payment of 35% of the liabilities and coverage of the procedural costs,
  • Within 5 years if the costs of the insolvency proceedings are covered
  • Or after six years at the latest (even without any payment)

These are the goals to free bankrupted businessmen from their liabilities (discharge of residual debts) and thereby begin an economic restart.

What does “discharge of residual debt” mean?

If you have more debts than you can probably repay in the foreseeable future, part of your debts (the “rest”) will be canceled. To do this, however, the debts must be repaid as far as possible. After the end of the so-called conduct phase, the person concerned is then debt-free.

Who can file for personal bankruptcy?

Every private person who is no longer able to meet their due payment obligations permanently, so that there is insolvency (employees, pensioners, civil servants, housewives, unemployed, recipients of other social benefits, etc.).

Self-employed and small business owners only if the business has already ceased (the business has been deregistered), there are fewer than 20 creditors and there are no liabilities from employment relationships (remuneration to employees or arrears social security contributions for employees with health insurance companies). The option available is to select going through portfolio recovery lawsuit.

Attention: If your company still exists or has already been discontinued and there are more than 20 creditors or liabilities from employment relationships, you will be excused via the standard bankruptcy. This can usually be initiated faster and more cost-effectively. Therefore, seek advice before ceasing your business activity so that you do not lose time and save costs!

Do you need help? If you are not sure which procedure is appropriate for you, Attorney Debt Fighters will check your creditor structure and show you ways to get into the residual debt discharge procedure as quickly and inexpensively as possible.

Personal bankruptcy: costs

We offer you a free initial consultation as well as binding and transparent fixed prices for all of our activities up to the opening of insolvency proceedings. It does not matter whether we reach a quick out-of-court settlement or prepare the extensive insolvency application and all the attachments for you and submit it to the competent court.

Our prices are based on the number of your creditors and are calculated as follows:

6 TO 10 CREDITORS $ 950
11 TO 15 CREDITORS $ 1,200
16 TO 20 CREDITORS $ 1,350
21 TO 25 CREDITORS $ 1,550
26 TO 30 CREDITORS $ 1,750
MORE THAN 30 CREDITORS According to the arrangement

Of course, there is also the option to offset the costs in installments.

The bankruptcy court also incurs costs for the bankruptcy proceedings. The average costs for private insolvency proceedings are – depending on the number of creditors – between $1,800 and $2,500. If you are unable to raise these costs, you can apply for a deferral of the procedural costs. We will of course also prepare the relevant application for you.

Assets in bankruptcy

The liquidator must pull all assets to the bankruptcy estate. This affects all assets that can be seized in accordance with the provisions of the Code of Civil Procedure.

These include, for example:

Wages, salaries, benefits, sick pay, employment, benefits

When filing the insolvency application, you signed a declaration that you would assign all attachable wage and salary components to your trustee.

The bankruptcy administrator/trustee can therefore only claim that part of your remuneration that is attachable. You can read the amount of the attachable amount from the attachment table for § 850 c ZPO or the attachable amount with us.

When filing the insolvency application, you signed a declaration that you would assign all attachable wage and salary components to your trustee.

The bankruptcy administrator / trustee can therefore only claim that part of your remuneration that is attachable. The amount of the attachable amount can be found in the attachment table for § 850 c ZPO or calculate the attachable amount with our attachment calculator.


A car is an asset that basically falls into the bankruptcy estate and has to be disposed of. However, if you need the vehicle for the way to work, the car can be impoundable. For example, if you cannot get to your place of work by public transport within a reasonable time because of your place of residence or working hours. A travel time of one hour is usually reasonable. However, the individual case is decisive.

Rental Deposit

The deposit for your rented apartment, which you are living in at the time the bankruptcy commences, is part of the bankruptcy estate when you move out. You cannot therefore plan the deposit for a new apartment. In the conduct of business phase, too, the deposit is collected by the trustee, who will apply for the supplementary distribution for this purpose.

Additional costs, energy costs or other reimbursements

Refunds in connection with the tenancy are part of the bankruptcy estate until the deadline from the declaration in accordance with Section 109 (1) sentence 2.

Endowment life insurance, death benefit insurance, contracts, etc.

Insurance contracts that are recognized as pension assets are not included in the bankruptcy estate. These include, for example, the contracts. Direct insurances within the framework of company pension schemes are usually not affected by insolvency. Death benefit insurances are also not included in the bankruptcy estate up to a maturity payment of $ 3,500.00.

Normal endowment insurance policies or life insurance policies that lead to a premium refund in the event of termination fall into the bankruptcy estate and can and must be terminated by the insolvency administrator.


A property falls into the insolvency estate and must generally be disposed of by the insolvency administrator. Any surpluses fall into the bankruptcy estate. However, if the charges are higher than the value of the property, the property manager will often release the property.

Co-operative shares / housing cooperative

The insolvency administrator can terminate membership shares in housing cooperatives if these amount to four times the usage fee for one month (excluding operating costs) or more than EUR 2,000.00. However, only partial termination is possible. This means that there is no risk that the cooperative will terminate the lease because there is no longer any cooperative share.

Securities, jewelry, works of art, etc.

These valuables generally fall into the bankruptcy estate.

Tax refund claims

Claims for reimbursement up to the cancellation of the insolvency proceedings and order of the conduct of business phase fall into the bankruptcy estate. Only the claims that arise from the order of the conduct of business phase are withdrawn from the access of the insolvency administrator / trustee.

Attention: The above assets are only the most important items that are regularly of particular importance. A final list is not possible….

Bankruptcy table

After bankruptcy proceedings have opened, your creditors will be asked to register their claims on the bankruptcy table. The insolvency administrator checks whether the claims are justified and then creates a list of claims. Only those creditors will be considered whose claims have been registered and recognized by the approval of the final invoice, which precedes the final date.

Share this


How to Choose the Right Security Cameras for Your Home

Choosing the right home security camera involves understanding your needs, budget, and privacy concerns—discover how to make the perfect choice.

Innovative Landscape Lighting Ideas to Enhance Your Outdoor Space

Jazz up your garden with innovative landscape lighting ideas that promise to transform your outdoor space—discover how to bring your vision to life.

DIY Versus Professional Tree Services: Making the Right Choice

Learn why choosing between DIY and professional tree services could save you from potential hazards and legal troubles—discover the best path for your yard.

Recent articles

More like this