period of good conduct

A period of good conduct is the period of time during which the person who has applied for insolvency must behave towards his creditors. The period shall be 6 years from the date of the opening of insolvency by the consumer.

The procedure for a period of good conduct

During this period, the assets and the attachable portion thereof are assigned to the appointed trustee, who then uses them to settle the procedural costs and pays the agreed quota to the creditors to settle the debt. If an inheritance occurs during the good conduct period, 50 percent of it must be assigned to the trustee for debt repayment.

If the person in insolvency acquires new goods, such as a car or jewellery, from the portion of the assets that cannot be seized, these may not be seized.

The amount of the unseizable portion of income during the period of good conduct

The exact amount depends on the attachment table, which is based on the maintenance obligations of the person declared bankrupt. A single person is allowed to keep 990 Euro net per month. However, if the person is dependent on another person, it is 1360 euros per month and if there is a maintenance obligation for two persons, the amount is 1560 euros per month. All other income in excess of these amounts shall go to the trustee.

Obligations during the good conduct period of the person in insolvency

The duties here are referred to as obligations. In order to obtain residual debt discharge after a 6-year period, it is very important to comply with these obligations. Failure to comply with these obligations cannot result in discharge of residual debt. come.

This includes the complete information as well as the respective changes with regard to place of residence, employer, amount of income as well as the overall economic situation. This information must be provided to the court and to the trustee.

Similarly, the person in insolvency must be in reasonable employment (i.e. full-time) or, in the event of unemployment, must seek employment and accept any reasonable activity.

If an inheritance is made during the term, a 50% share of it must be assigned to the trustee.
During the period of good conduct, the trustee receives a minimum annual remuneration of 100 euros (plus expenses), which must be paid by the person in insolvency.

All special payments must be passed on to the trustee and only the trustee may settle any outstanding claims against creditors.

The last two years

In order for the person in insolvency to receive additional motivation and survive the 6-year period, the debtor receives from the trustee 10 percent of the attachable income in the 5th year of the period and 15 percent of the attachable income in the 6th year in addition to the non-garnishable portion. This should make it easier for the debtor to survive the remaining 2 years.

The end of the period of good conduct

If the person in insolvency has complied with the obligations valid for this period during the period of 6 years from the opening of insolvency, he shall be discharged from residual debt. In this way, the debtor has complied exactly with his obligations and there must be no grounds for refusing or revoking the discharge of residual debt. Otherwise such an exemption cannot take place.