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Kanzlei Verbracken & Partner
Personal insolvency: consequences and alternatives
Insolvency can support an orderly fresh start while affecting income, assets and daily life. A sound decision considers both sides. This overview concerns German personal insolvency and links to further guidance.
Income and assets
Attachable income and realisable assets may be used for creditors. This does not mean you are left without living expenses. The protected amounts and items need assessment. Blanket statements are particularly unreliable for property, vehicles and private pension contracts. Question promises of guaranteed asset retention.
Cooperation and disclosure
Proceedings require complete disclosure and compliance with ongoing duties. Report changes to income, activity and address. Concealing assets or deliberately submitting incomplete information can jeopardise discharge. Thorough preparation reduces the risk of important matters emerging only after proceedings have started.
Family, work and public records
Marriage alone does not make your partner responsible for your debts. Joint contracts, guarantees and security alter the assessment. Work and communications to relevant parties also matter. Insolvency proceedings may be publicly announced, so absolute secrecy from every third party cannot be promised.
What discharge does not resolve
Some claims are excluded; new debts and security rights require separate assessment. Leaving proceedings does not automatically end every financial obligation. What matters is the debt you actually have. Compare that issue before comparing procedure lengths alone.
Compare alternatives fairly
Assess sustainable repayment, settlement and, where appropriate, European proceedings. International routes add requirements and costs. An option is not better merely because it sounds faster. For high debts, we discuss the relevant questions before a particular route is chosen.
Sources and legal foundations
Sources checked: 14 September 2026
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