What does Insolvenz mean?
An Insolvenz (insolvency) is a court procedure for people or companies who can no longer pay their debts.
die Insolvenz · die Insolvenzen (plural)
For private individuals there is consumer insolvency (Verbraucherinsolvenz), often called Privatinsolvenz.
Before that, you usually have to try to reach an agreement with your creditors. A recognised debt advice centre helps with this.
During the procedure, you hand over part of your income. After some years, the court can release you from the remaining debts.
Some debts remain anyway, for example fines.
Example sentence
Über Ihr Vermögen wurde das Verbraucherinsolvenzverfahren eröffnet.
Consumer Insolvenz proceedings have been opened over your assets.
What you can do
Only start an insolvency with advice. Many debt advice centres help for free.
Related words
- Schuldnerberatung A Schuldnerberatung (debt advice centre) helps people with debts get an overview and find a way out.
- Gläubiger A Gläubiger (creditor) is a person, company or office that you owe money to, or that claims you do.
- Schuldner A Schuldner (debtor) is a person or company that owes money to someone else. In letters about debts, this often means you.
- Pfändung Pfändung (seizure) means a Gläubiger takes money or things from you with the state's help to collect a debt.