Out-of-Court Consolidation of Debts Through Settlement
The out-of-court debt settlement frees you from all debts without having to make an affidavit or even conduct insolvency proceedings. We negotiate a one-off payment or an instalment payment with your creditors. It is often possible to significantly reduce the amount of the receivable.
- Stop further interest payments
- Reduction of open receivables
- Making receivables manageable and payable
- Aversion of foreclosure measures
The short-term goal for you is to achieve an immediate stop of further interest payments and to reduce the original amount or to adjust the maturity so that it is possible for you to actually pay and repay the (then reduced) claim. Visits from the bailiff, attachments of accounts or salaries are arranged.
This gives you the opportunity to actually make possible payments and you don’t have to worry about unexpected garnishments at your employer or in your account. There is no longer any danger that your bank card will be withdrawn from the ATM or that your employer will threaten to give you notice of termination because of the garnishment.
- Targeted and effective reduction of your debts
- Clearing your Schufa and other debt registers, regaining creditworthiness
- Financial freedom without debt
The payment plan gives you an overview of exactly what you have to pay monthly and thus a basis for calculating your finances. It can no longer happen to you that your monthly financial plan will be destroyed by an unexpected seizure. With the settlement agreements, you have created financial planning security that protects you from unpleasant surprises.
Examples from our practice
An employee in debt settles the matter with a creditor and then founds a company
Our client had become heavily in debt: through an elaborate lifestyle, divorce, loss of job and maintenance obligations, the client has accumulated debts of € 50,000 with several creditors. The client planned to set up his own business with his cousin, but this was hampered by the threat of an affidavit, attachment of an account and Schufa entries.
The removal of the obstacles was only possible by means of creditor settlements. In the case of a consumer insolvency, further seizure attempts and affidavits would not be made, but the client would have had an entry in the debtor register for six years until the end of the insolvency proceedings and a negative Schufa entry for another three years (after the residual debt exemption).
We negotiated with 15 creditors and agreed on 15 different settlements with them, through which all debts could be paid off. The result of the negotiations: We mainly agreed one-off settlement payments, plus some installments. Schufa entries could be deleted as quickly as possible, account garnishments were lifted. The client was able to pursue his goal of self-employment and, as one of two managing directors, now runs a well-running limited liability company. He has commissioned our law firm to collect receivables for his limited liability company.
Thailand returnee ventures a new start in Germany
The client had turned his back on Germany and emigrated to Nakhon Ratchasima in Thailand. His relationship there failed, however. After we advised the client on site through our Thailand desk, the latter decided to return to Germany. Here, however, considerable existing old debts were still waiting for him, and the interest rates were already higher than the main claims themselves.
We contacted all creditors already before the client returned. As a result, the client was able to enter the country unhindered. He had already applied to potential employers from Thailand. With the help of close relatives and a new job, we were able to settle the client’s largest claim with a one-off payment and others with appropriate installments. The employer has not found out about the financial situation of the client. Today, the client is married to a Thai woman in Germany. The debts have been paid in full.
Exemption of 60.000€ debt after separation
Our young client worked for a large bank. Shortly after entering the world of work, she bought a car and rented an apartment. Due to a new relationship, she rented a new, larger apartment for herself and her new boyfriend. She lent him money, took out two loans from her employer and another from another bank. Then the couple separated, the apartment got stuck with the client, the boyfriend did not pay the money back. In addition, her vehicle turned out to be a “Lemon car.”
All in all, she was suddenly confronted with claims of approx. 60,000 €. Her own employer threatened to take legal action, endangering her job. An affidavit would have led to termination. We negotiated instalments and a new credit line with the creditors. The client paid small instalments over a longer period of time. This allowed her financial leeway again. The client paid off the instalments reliably, the employment relationship was secure and she is now debt-free again.