A personal insolvency is divided into the following process steps:
· Extrajudicial agreement
· Judicial agreement (if extrajudicial fails): proposal for opening insolvency proceedings has to be filed in written form
To achieve an extrajudicial agreement it is necessary that all debtees agree. For a judicial agreement a debtees’ bare majority is effectual.
If judicial agreement fails too, simplified insolvency proceedings follow: An escrow utilizes the seizable estate and hands it out to the debtees.
After six years the defaulter gets released from his remainder of the debt.