Consumer insolvency

Definition: The consumer insolvency proceedings applied for include the proceedings opened by a court decision or dismissed because of a lack of mass, as well as the consumer insolvency proceedings in which the debt adjustment plan submitted was adopted. Background: The Insolvency Code (Insolvency Code) which entered into force on 1 January 1999 (InsO) opens up the possibility of consumer insolvency proceedings (Section 304 InsO) to overindebted (natural) persons, followed by a waiver of residual debt. After a period of good conduct (Section 295 InsO), which ends six years after the opening of insolvency proceedings (Section 287 InsO), an economic start is then possible for over-indebted persons. The insolvency proceedings opened are intended to reliably determine their asset and debt situation, as well as to collect and exploit recoverable assets. On 1 March. In December 2001, insolvency law was amended to allow for a deferral of the costs of the proceedings. Following this change, the number of consumer insolvency has increased significantly. Data source: IT.NRW, insolvency statistics