By the middle of 2014 , the conduct of private bankruptcy always lasted six years . Only then could the debt waiver be granted, which ensures that creditors can no longer collect their outstanding claims. The reform of insolvency law has created opportunities for consumers to become debt free sooner .
A shortening of the good conduct phase is now possible in the following cases:
- The good conduct phase ends after three years , when the debtor has paid both the legal costs and 35 per cent of his debts during this period.
- A reduction to five instead of six years can be carried out if the person concerned has at least paid the costs of the proceedings .
According to a study by the business consultancy Crif Bürgel, however, the first assessment of the new rules governing private bankruptcy is rather modest. Only eight percent of those who filed for bankruptcy shortly after the reform were able to shorten the conduct of the conduct of business to three years . Mostly younger people are the ones who made it. The reason: your debts are usually manageable and therefore easier and faster to pay off.