Granting or refusal of discharge of residual debt

To be freed from the debts can succeed through the successful conclusion of a residual debt discharge procedure.

The residual debt discharge procedure (see also text "Residual debt discharge procedure" or expiry of the residual debt discharge procedure) usually ends with a court decision: Granting or refusal of the residual debt exemption by a decision of the insolvency court.

If the proceedings have not been terminated prematurely, the insolvency court usually decides on the application for discharge of residual debt when the assignment period has expired. The assignment period is 3 years (or 5 years in a new procedure). The court first gives the persons involved in the proceedings the opportunity to comment. Insolvency creditors as well as the trustee can apply for the refusal of the discharge of residual debt.

If a creditor submits an application for refusal, the ground for refusal on which he relies must be substantiated and presented in a comprehensible description of the facts. If you dispute these facts, the creditor must make the factual presentation credible. If the credibility is successful, the insolvency court determines the facts relevant to the decision ex officio.

If, after your hearing and after clarification of the facts, the court does not find a reason for refusal, it rejects the application for refusal of the discharge of residual debt. If, on the other hand, a ground for refusal is established, the insolvency court may decide to refuse the discharge of residual debt, taking into account all the circumstances of the individual case.

As a rule, the granting of the discharge of residual debt is effective against all insolvency creditors. It refers to debts that were already established at the time of the opening of insolvency proceedings and have not yet been repaid. It also applies to insolvency creditors who have not lodged their claims. The so-called estate liabilities, i.e. the obligations that have arisen in connection with the insolvency proceedings, do not fall under the residual debt exemption. Similarly, the discharge of residual debt does not cover other new debts that have been established only after the opening of insolvency proceedings, in particular the recurring obligations to pay maintenance or apartment rent after the opening date. In addition, certain claims are excluded from the discharge of residual debt; these include, inter alia, fines, fines, periodic penalty payments and liabilities arising from an intentionally committed tort (e.B bodily injury, damage to property), provided that the creditors have indicated the facts from which they consider this legal ground to arise when filing their claim.

However, it should be noted that which liabilities are covered by the residual debt exemption and which are not, can only be determined specifically on the basis of the circumstances of the respective individual case.

If the discharge of residual debt has already been granted, it can also be revoked retrospectively at the request of an insolvency creditor if, for example, it subsequently turns out that the debtor intentionally violates one of his obligations and has thereby significantly impaired the satisfaction of the insolvency creditors or if the debtor has intentionally or grossly negligently violated obligations to provide information or cooperate after granting the discharge of residual debt, which he has violated according to the Insolvency Code

see requirements

Forms/online services available: Yes

Written form required: Yes

Informal application possible: No

Personal appearance necessary: No

Preconditions

  • Admissible application for discharge of residual debt has been filed
  • the assignment period has expired
  • No ground for refusal has been established by the insolvency court at the request of a creditor.
  • Discharge of residual debt - economic restart (bmjv.de)
  • Insolvency Law I Lower Saxony State Justice Portal

Related Links

  • ยง 287 paragraph 1 Insolvency Code (InsO)
  • The granting or refusal of the discharge of residual debt takes place at the end of the residual debt discharge procedure. Consumers must file the application for discharge of residual debt with the insolvency application or immediately after this application. Other persons should combine the application for discharge of residual debt with the insolvency application.
  • Even before the opening of insolvency proceedings, the insolvency court examines whether the application for discharge of residual debt is admissible.
  • If residual debt exemption was granted in insolvency proceedings filed after 1 October 2020, a new application for residual debt exemption is only admissible after eleven years
  • If the application for discharge of residual debt is admissible (for example, because the debtor has not yet been granted or denied discharge of residual debt.dem), the court regularly finds at the opening of insolvency proceedings that the debtor obtains discharge of residual debt if no reasons for the refusal of discharge of residual debt are known in the insolvency proceedings and in the subsequent conduct of business period and asserted by the creditors and the debtor fulfils certain obligations in the conduct of business period.

Responsible for the content
Lower Saxony Ministry of Justice

Last update or date of publication
01.11.2021