Debtor and insolvency counselling

The Debtor and Insolvency Counselling Centre of the Saarpfalz district advises families and individuals with particular financial difficulties. Together with those seeking advice, decision-making aids are developed that show a way out of the often seemingly hopeless debt. In addition to the concrete determination of the over-indebtedness situation and the development of a budget plan, the debt counselling service also includes support in negotiations with creditors. All discussions are of course treated confidentially.

Counselling is free of charge.

The indebtedness or over-indebtedness of private households is a serious problem. Financial difficulties usually have several causes. Obligations from loans or instalment contracts, unemployment or family-related circumstances such as separation, divorce or the death of a partner are among the most common reasons for household debt and over-indebtedness. Financial problems are often compounded by personal, family and social problems.

Counselling for people living in the Saarpfalz district in financially difficult situations

The counselling services

- Inventory and analysis of the debt or over-indebtedness situation
- Support with debt settlement (development, implementation of restructuring concepts and negotiations with creditors on settlements)
- Economic crisis intervention (securing livelihoods and preventing coercive measures)
- Economic social work (financial and legal advice in conjunction with socio-educational counselling) - Financial and budget advice (drawing up a budget) - Issuing a certificate for an attachment protection account for debtors in accordance with Section 903 of the German Code of Civil Procedure (ZPO).
- Financial and budget counselling (drawing up a budget)
- Issuing a certificate for the garnishment protection account in accordance with Section 903 ZPO for debtors affected by an account garnishment.

Aims of the counselling

- Securing livelihoods (housing, energy supply, workplace)
- Strengthening self-help potential
- Economic and psychosocial stabilisation
- Debt settlement
- Discharge of residual debt
- Reintegration into working life
- Economic reintegration
- Prevention

Insolvency counselling

Since the beginning of 1999, the right to apply for private insolvency proceedings in order to receive a residual debt discharge after going through the process has been one way of preventing the threat of lifelong debt. In order to give over-indebted people this opportunity, insolvency counselling centres (insolvency = inability to pay) have been set up in most debt counselling centres in Saarland for some time.

Insolvency counselling is a supplement to general debt counselling. Both centres advise indebted and over-indebted individuals and families who are unable to cope with their economic, personal and social situation without expert help. The insolvency advice centres are recognised by the Ministry for Women, Labour, Health and Social Affairs as suitable centres and are subsidised.

The task of insolvency counselling is to advise people who may be eligible to apply for consumer insolvency proceedings.

To this end, appropriate support is provided for out-of-court and in-court settlement efforts and the certificate required for the application is issued. Those affected are also supported and assisted in the application and handling of the proceedings.

The Insolvency Code is intended to open up the possibility of a fresh economic start for all those who have failed financially despite their best endeavours, following insolvency proceedings, unless a settlement can be reached with all creditors beforehand to settle the debt.