Personal Bankruptcy

How to protect themselves when the debt before further debt it sounds paradox, but a personal bankruptcy, so the procedure for debt relief of debtors, which alone no longer manage to get out of the debt trap generates costs that are not negligible. You can say that the cost of a private insolvency proceedings with about 10 percent of the debt to 2(2c)/beech beat. This is an amount not to influx, which initially added to the debt, before it is ever on the repayment depending on the situation of the debtor. Included in this 10 percent in addition to the fees of the lawyer and the fees, court costs and pay for the trustee. I put together some tips, which help debtors should, to avoid these costs or to reduce. 1. try to move your creditors to do so, to adopt them with a portion of your debts without a private insolvency proceedings.

Most creditors know that in the course of a personal bankruptcy your debts to them partially or completely you might lose and are therefore often willing to accommodate you. Since such negotiations with creditors are not easy and require a lot of expertise, you should have help from a debt counselling, to work out a proposal which is acceptable to all creditors. This is important, because if only a creditor does not accept the proposal, the comparison with all creditors is void and there remains only the insolvency proceedings. 2. try to keep the Attorney’s fees as low as possible. There is the possibility, in the District Court of a permission slip”to request, with which you can avoid at least some of the first lawyer costs. With the permission slip”the initial consultation and the letter to the creditor is free for you when the lawyer because the Treasury assumes these costs. 3.

request a deferral of court fees. Until a few years ago, a debtors had to pay the court costs amounting to approximately 2500 already prior to the procedure. The resulted in that the debtor had to borrow more holdings subject to interest, to finance the private proceedings. Now the law has changed and allows now for the debtor, to apply for a deferral of the court costs. This request is granted, you can pay off the court costs in installments. 4. consider a remaining debts abroad. In some European countries, such as France, Great Britain or Spain, there is also the possibility to mount a private insolvency proceedings. The conditions for this are a little different than when the German procedure. The so-called good behavior phase in these countries is sometimes significantly shorter than in Germany. Because the cost of the procedure corresponding to approximately the cost of a personal bankruptcy in Germany, it can be worthwhile to initiate a proceedings abroad, because ultimately previously exempt from your debt and can start earlier to build a new life.

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