🪜 Consumer insolvency and discharge of residual debt

How the procedure works, which requirements apply and why discharge of residual debt is usually possible after 3 years.

consumer insolvency private insolvency discharge of residual debt insolvency application refusal of discharge bar period

In brief

Consumer insolvency is a court procedure for private individuals. At the end there can be a discharge of residual debt (Restschuldbefreiung): remaining debts are waived.

You must apply for the discharge. You assign your attachable income for the assignment period. This is usually 3 years after the opening of the proceedings.

Certain debts are excluded, for example criminal fines and liabilities from intentionally committed torts.

Step by step

Document the settlement attemptObtain a certificate from a suitable body.
File the application with the listsFill in the lists of assets, creditors and claims completely.
Apply for discharge of residual debtTogether with the application or within two weeks of a notice under § 20 Abs. 2 InsO.
Declare the assignment to the trusteeAttachable income goes to the trustee for 3 years.

Deadlines

3 years

Assignment period after the opening of insolvency proceedings.§ 287 Abs. 2 InsO

2 weeks

Application for discharge of residual debt with the insolvency application or within two weeks of a notice under § 20 Abs. 2 InsO.§ 287 Abs. 1 InsO

11 years

Bar if discharge of residual debt was granted in the eleven years before the application.§ 287a InsO

Watch out – common mistakes

Five years instead of three apply in a repeat procedure if discharge of residual debt was already granted once on an application made after 30 September 2020 (§ 287 Abs. 2 Satz 2 InsO).
Important grounds for refusal: conviction under §§ 283–283c StGB, false information, breach of duties to provide information or cooperate (§ 290 InsO).
After refusal under § 297 a bar of five years applies, after § 290 Abs. 1 Nr. 5–7 or § 296 three years (§ 287a InsO).
Excluded claims remain in place (§ 302 InsO).

In depth · legal basis, figures and practice – for advisers and professionals

Scope

§ 304 InsO governs consumer insolvency proceedings for natural persons without an independent business activity. Anyone who is or was self-employed falls under it if their financial affairs are manageable (fewer than 20 creditors) and there are no claims from employment relationships.

Discharge of residual debt

Discharge of residual debt requires an application. The application must be filed with the insolvency application or within two weeks of a notice under § 20 Abs. 2 InsO (§ 287 Abs. 1 InsO). The debtor must declare that they assign attachable income for the assignment period. It is 3 years after opening (§ 287 Abs. 2 InsO). After the period ends, the court decides after a hearing (§ 300 InsO); if discharge is refused, legal remedies are available.

Refusal and bar periods

Grounds: § 290 InsO. Bar periods: § 287a InsO (11 years after an earlier grant; 5 years after refusal under § 297; 3 years after refusal under § 290 Abs. 1 Nr. 5–7 or § 296).

Who is responsible

Amtsgericht (local court) – insolvency court
Recognised debt and insolvency counselling centre
Trustee

Quick questions

Worum geht es bei „Consumer insolvency and discharge of residual debt“?

How the procedure works, which requirements apply and why discharge of residual debt is usually possible after 3 years.

Which deadlines and figures matter?

3 years: Assignment period after the opening of insolvency proceedings. (§ 287 Abs. 2 InsO)
2 weeks: Application for discharge of residual debt with the insolvency application or within two weeks of a notice under § 20 Abs. 2 InsO. (§ 287 Abs. 1 InsO)
11 years: Bar if discharge of residual debt was granted in the eleven years before the application. (§ 287a InsO)

What should I do first?

Document the settlement attempt: Obtain a certificate from a suitable body.
File the application with the lists: Fill in the lists of assets, creditors and claims completely.
Apply for discharge of residual debt: Together with the application or within two weeks of a notice under § 20 Abs. 2 InsO.

What do I need to watch out for?

Five years instead of three apply in a repeat procedure if discharge of residual debt was already granted once on an application made after 30 September 2020 (§ 287 Abs. 2 Satz 2 InsO).
Important grounds for refusal: conviction under §§ 283–283c StGB, false information, breach of duties to provide information or cooperate (§ 290 InsO).
After refusal under § 297 a bar of five years applies, after § 290 Abs. 1 Nr. 5–7 or § 296 three years (§ 287a InsO).

Evidence

Gesetze im Internet, InsO § 287, retrieved 20 September 2026
Gesetze im Internet, InsO §§ 287a, 290, 300, 302, retrieved 20 September 2026
Gesetze im Internet, InsO §§ 304, 305, retrieved 20 September 2026

As of

September 2026 · Sources and method

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