The most important facts on the subject of private insolvency and Hartz 4 payments
Yes. Receiving Hartz 4 benefits and private insolvency are not mutually exclusive. Residual debt discharge is also possible for ALG-2 recipients.
Already when filing for private insolvency, Hartz 4 recipients should apply for deferral of procedural costs. Then these costs only become due after the discharge of residual debt.
Unemployed Hartz 4 recipients must make serious efforts to find a new job during private insolvency. Otherwise there is a risk that the discharge of residual debt will be denied.
Private insolvency proceedings without assets or income?
When it comes to personal insolvency, Hartz 4 recipients have a few things to keep in mind.
In the course of private insolvency the debtor’s attachable assets are first distributed to the creditors. The actual private insolvency proceedings are followed by the three, five or six-year good conduct phase. During this time, the debtor is required to pay the The debtor must cede the attachable portion of his income to the insolvency administrator, which then in turn passes it on to the creditors.
A private insolvency often appears to Hartz-4 recipients as a the only way to find a way out of debt. After all, the standard rate and other benefits are only sufficient to cover the cost of living. Putting aside some money to pay off debts is hardly possible.
But is private insolvency even an option for Hartz 4 recipients?? Finally they have no assets or income, With which the claims of the creditors could be satisfied. The good news is that even unemployment benefit 2 recipients, if they meet the necessary requirements, have, the right to go through private insolvency and to achieve a discharge of residual debt.
Are you not sure whether a private insolvency is the right solution for you? As a Hartz 4 recipient you have the Possibility to apply for a consulting assistance certificate. This one allows you to get a free consultation with a bankruptcy lawyer. Only one Fee in the amount of 15 euros Must pay for it.
This is what to watch out for in private insolvency with simultaneous Hartz 4 receipt
crushing debts? Private insolvency can be a way out if you are on Hartz 4.
Private insolvency is therefore definitely an option for Hartz 4 recipients. Here however some is to be considered. First of all, debtors must be aware of the fact, That certain costs are incurred for insolvency proceedings.
This includes, among other things, lawyer’s fees and court costs. This must be covered by the insolvency estate, otherwise the application for insolvency will be rejected.
However, this is usually not the case for Hartz 4 recipients. For this reason debtors should promptly apply for a deferral of the costs of the proceedings.
This is in § 4a para. 1 of the Insolvency Code (InsO) regulated. There it is said:
If the debtor is a natural person and has filed an application for discharge of residual debt, the costs of the insolvency proceedings shall, upon application, be deferred until the granting of discharge of residual debt to the extent that the debtor’s assets are not expected to be sufficient to cover such costs.
During a private insolvency Hartz 4 recipients must also Make a serious effort to find a new job, Enabling them to earn their own income. However, the ALG 2 recipient cannot be forced to accept any job. Rather it must be a reasonable job.
The insolvency court may require appropriate evidence, to check whether the debtor is actually making a serious effort to find a new job during the private insolvency process.
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