Wegweiser Debtors · Ways out of debt Deutsch

🤝 Out-of-court settlement with creditors

Trying to reach a settlement with your creditors is a precondition for consumer insolvency.

out-of-court settlement debt adjustment plan compromise creditor certificate instalment payments

In brief

Before you apply for consumer insolvency, you must have tried to reach a settlement with your creditors. A plan is drawn up for this, for example with instalments or a partial debt waiver.

A suitable body, for example a debt counselling service, advises you and later certifies that the attempt failed.

Step by step

  1. Review income and debtsWhat can you realistically pay each month?
  2. Draw up a plan with adviceA proposal for all creditors, treated as equally as possible.
  3. Write to creditorsSet a deadline for a reply.
  4. If it fails, obtain a certificateIt serves as proof for the insolvency application.

Deadlines

6 months
The certified settlement attempt must fall within the last six months before the application.§ 305 Abs. 1 Nr. 1 InsO
Watch out – common mistakes
  • A plan only applies if the creditors agree; there is no guarantee they will hold off.
  • Creditors may keep garnishing during this phase; protection through the P-Konto and exemption limits remains important.
  • Do not give preference to individual creditors when paying; this can later lead to refusal of discharge (equal treatment, cf. § 295 InsO).
  • A joint certificate requires personal advice and a review of your circumstances.
In depth · legal basis, figures and practice – for advisers and professionals

Precondition of the application

§ 305 Abs. 1 Nr. 1 InsO requires, with the application, a certificate from a suitable person or body confirming an unsuccessful out-of-court settlement attempt in the last six months, the plan and the reasons for the failure.

Further documents

Also required are a list of assets, an asset overview, a list of creditors and a statement of claims, each with a declaration that it is correct, as well as a declaration on whether discharge of residual debt is applied for. Incomplete forms lead to a request to supplement them within one month (in certain cases three months).

Who is responsible
  • Recognised debt and insolvency counselling centre
  • Lawyers offering insolvency advice
  • Insolvency court (when applying)
Further reading
Debt counselling: the first stepConsumer insolvency and discharge of residual debt

Quick questions

Worum geht es bei „Out-of-court settlement with creditors“?
Trying to reach a settlement with your creditors is a precondition for consumer insolvency.
Which deadlines and figures matter?
6 months: The certified settlement attempt must fall within the last six months before the application. (§ 305 Abs. 1 Nr. 1 InsO)
What should I do first?
  • Review income and debts: What can you realistically pay each month?
  • Draw up a plan with advice: A proposal for all creditors, treated as equally as possible.
  • Write to creditors: Set a deadline for a reply.
What do I need to watch out for?
  • A plan only applies if the creditors agree; there is no guarantee they will hold off.
  • Creditors may keep garnishing during this phase; protection through the P-Konto and exemption limits remains important.
  • Do not give preference to individual creditors when paying; this can later lead to refusal of discharge (equal treatment, cf. § 295 InsO).
Evidence
  • Gesetze im Internet, InsO § 305, retrieved 20 September 2026
  • Gesetze im Internet, InsO § 295, retrieved 20 September 2026
  • Bundesarbeitsgemeinschaft Schuldnerberatung, bag-sb.de, retrieved 20 September 2026
As of

September 2026 · Sources and method

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