Germany
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Kanzlei Verbracken & Partner
Regular insolvency for current and former self-employed people
Regular insolvency is the German procedure used by, among others, currently self-employed people. For individuals it may include a discharge application. It must therefore be distinguished from company insolvency and consumer insolvency.
Who should assess this route
Formerly self-employed people may also use this route where consumer-insolvency requirements are not met, particularly regarding creditor numbers and employment-related claims. Debt amount does not determine that distinction. A complete account of your activity and history matters more than the everyday name used for proceedings.
Business and household
Proceedings consider ongoing business, equipment and assets. Continued trading or release of the activity requires assessment, alongside a realistic household budget. Turnover is not disposable income: operating expenses, taxes and new commitments must be included in planning.
Personal discharge needs a separate request
An individual may seek discharge in regular proceedings. This is not personal discharge for a company. Claim exceptions and duties still require assessment. For business debts involving taxes, social contributions or liability, establish the legal basis of each significant claim before choosing proceedings.
Preparation and alternatives
Assemble creditors, contracts, business figures and household expenses. Identify disputes and security. High personal debts may justify considering settlement or appropriate European routes. Corporate filing duties are separate and must not be delayed by personal debt planning.
Sources and legal foundations
Sources checked: 14 September 2026
Your situation deserves a clear next step.
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