📉 Debts after release
In brief
Debts from the time before prison usually keep running during imprisonment, often with additional interest and reminder fees. On top of this there may be your own liabilities from the criminal proceedings: court and procedural costs and claims for damages from the injured parties. Discharge of residual debts (Restschuldbefreiung) through insolvency proceedings is in principle also possible for people released from prison – with one important exception: claims arising from an intentional tort, i.e. from the offence itself, can be excluded from discharge if creditors expressly register them as such in the proceedings.
Step by step
- Get an overview of your liabilitiesGet an overview of court costs, private debts and damages claims while still in prison.
- Contact debt counsellingContact a recognised debt counselling service – in some cases there is counselling available directly in the prison.
- Apply for payment by instalments with the state treasuryIf you are unable to pay, apply for payment by instalments or deferral of court costs and procedural expenses.
- Have personal insolvency checkedHave it checked whether insolvency proceedings with discharge of residual debts make sense – and which claims may remain excluded from it.
- Raise victim-offender mediation as an optionFor damages claims from injured parties, victim-offender mediation (Täter-Opfer-Ausgleich) can make an amicable settlement possible.
Deadlines
- Claims arising from an intentional tort – such as the damage caused by the offence – can be excluded from discharge of residual debts if creditors expressly register them as such in the proceedings (§ 302 no. 1 InsO). This is not automatic, but depends on the creditors' conduct in the proceedings.
- Court costs and procedural expenses from your own criminal proceedings are separate claims of the state treasury and continue to run independently of civil-law debts.
- Anyone who does not report existing instalment agreements from before prison risks payment orders and additional costs during the time in prison.
- Debt counselling is a mandatory municipal service, but the specific offer (waiting times, capacity) varies by municipality.
In depth · legal basis, figures and practice – for advisers and professionals
Types of debt after an offence
Typically three kinds of claims come together after prison: procedural costs (court costs, and possibly lawyers' fees), damages claims from injured parties and "old" debts from the time before prison (e.g. consumer loans, rent arrears).
Discharge of residual debts and the exception for intentional torts
The standard insolvency procedure with discharge of residual debts (§§ 287, 287a InsO) is in principle also open to people released from prison; discharge of residual debts can be granted after three years at the earliest, if the other statutory requirements are met. Under § 302 no. 1 InsO, claims arising from an intentionally committed tort are excluded from discharge of residual debts if the creditor expressly asserts this when registering the claim.
Debt counselling as a mandatory service
Under § 16a SGB II, debt counselling is one of the municipal integration services. Access is also open to people who do not (yet) receive benefits under SGB II; capacity and waiting times, however, differ from municipality to municipality.
Interplay with victim-offender mediation
Successful victim-offender mediation (§ 46a StGB) can settle damages claims in whole or in part amicably and at the same time can potentially lead to a reduced sentence (see the page "Victim-offender mediation").
A question about your situation that this page does not answer? Write to us or use the contact form – we will tell you which office is responsible and what to bring. Free of charge, without individual legal advice.