Everyday money · Jurisdiction DE

Consumer insolvency (Germany)

This is German law, not UK insolvency. Germany has a court consumer-insolvency procedure that may lead to residual-debt discharge. Finmon does not file anything and does not give legal advice. The educational path starts with independent debt counselling, not with a loan comparison in the app.

In more detail

A typical path under the German Insolvency Code: first an out-of-court settlement attempt with all creditors. A suitable person or body must certify that it failed (section 305(1) no. 1 Insolvency Code). If that fails, court proceedings may follow. Independent centres are listed at meine-schulden.de. Commercial refinancing offers are not counselling.

Background

Section 305 of the German Insolvency Code ties consumer insolvency to a documented out-of-court attempt. Residual-debt discharge may be granted after a statutory period if duties were met: duration and exceptions (for example fines or debts from intentional unlawful acts) are for a counsellor and the current Code, not for Finmon. New debts during the procedure usually remain.

An example

Payments no longer fit. Educational step in Germany: find independent debt counselling (meine-schulden.de). Do not “optimise” in Finmon or click a new instalment loan as a solution. This is German law.

A common misconception

If the instalment no longer fits, the next click is a new loan or a Finmon filing.

Germany has a statutory consumer-insolvency procedure. Independent debt counselling is the path towards it. Finmon files nothing.

Source: BMJV · Restschuldbefreiung. Last reviewed: 2026-10-27. Editorially reviewed on 2026-10-27. Next review 2027-10-27. Version 0.2.0. Finmon explains. It does not advise. Not investment, tax or legal advice.