Personal insolvency

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.