Wegweiser Students · Rights & Funding Deutsch

📉 Debt and over-indebtedness

Overdraft, student loan and unexpected BAföG reclaim: how over-indebtedness arises during studies and where to find free help.

Debt counselling (Schuldnerberatung) Consumer insolvency Discharge of residual debt Payment order (Mahnbescheid)

In brief

Overdraft credit, instalment purchases, private loans or an unexpected BAföG reclaim can quickly lead to over-indebtedness during studies. Recognised debt counselling centres – often run by welfare organisations or consumer advice centres (Verbraucherzentralen) – generally advise free of charge. If an agreement with creditors is hopeless, the last resort is consumer insolvency with discharge of residual debt after a few years.

Step by step

  1. Get an overviewList all liabilities with creditor, amount and due date.
  2. Go to a free debt counselling centreContact a recognised, usually free debt counselling centre rather than commercial debt settlement firms.
  3. Negotiate with creditorsWith the support of the advice centre, it is often possible to agree on instalment payments or a deferral.
  4. Document the out-of-court settlement attemptA failed out-of-court settlement attempt with creditors is a prerequisite for a court insolvency application.
  5. If necessary, apply for consumer insolvencyIf the out-of-court settlement fails, consumer insolvency proceedings can be applied for at the competent local court (Amtsgericht).

Deadlines

2 weeks
Time limit for objection against a court payment order from service§ 692 Abs. 1 Nr. 3, § 694 ZPO
3 years
Regular limitation period for ordinary contractual claims, e.g. from a mobile phone contract or small loan§ 195, § 199 BGB
3 years
Earliest possible point of discharge of residual debt in consumer insolvency proceedings§ 287 Abs. 2 InsO
Watch out – common mistakes
  • Commercial "debt settlement firms" often charge high fees for services that recognised debt counselling centres offer free of charge.
  • If you ignore reminders and enforcement orders, you risk an enforceable title that is hard to do anything about later – objection to a payment order must be made within two weeks.
  • A BAföG reclaim notice is a claim like any other: instalment payment or deferral can be applied for at the Bundesverwaltungsamt before enforcement threatens.
  • Even during studies, early over-indebtedness affects your own creditworthiness for years – acting early pays off.
In depth · legal basis, figures and practice – for advisers and professionals

Consumer insolvency proceedings

A prerequisite for the court application is proof of a failed out-of-court settlement attempt with creditors (§ 305 Abs. 1 Nr. 1 InsO). After successful proceedings, residual debt is in principle waived after three years (§ 287 Abs. 2 InsO in the version in force since 2021).

Deferral of procedural costs

Debtors without means can have the costs of the insolvency proceedings themselves deferred (§ 4a InsO), so that a lack of own assets need not be an obstacle to access to discharge of residual debt.

Distinction from study-specific deferral options

Before going down the insolvency route, study-specific deferral and exemption options should be checked, such as with the KfW student loan (grace period) or with BAföG repayment (deferral under § 18a BAföG).

Who is responsible
  • Local debt counselling centre (welfare organisations, Verbraucherzentrale)
  • Amtsgericht (local court; insolvency court)
  • Bundesverwaltungsamt (BAföG repayment)
Further reading
BAföG objection and repaymentStudent loans and scholarshipsAdvice and contact points

Quick questions

Worum geht es bei „Debt and over-indebtedness“?
Overdraft, student loan and unexpected BAföG reclaim: how over-indebtedness arises during studies and where to find free help.
Which deadlines and figures matter?
  • 2 weeks: Time limit for objection against a court payment order from service (§ 692 Abs. 1 Nr. 3, § 694 ZPO)
  • 3 years: Regular limitation period for ordinary contractual claims, e.g. from a mobile phone contract or small loan (§ 195, § 199 BGB)
  • 3 years: Earliest possible point of discharge of residual debt in consumer insolvency proceedings (§ 287 Abs. 2 InsO)
What should I do first?
  • Get an overview: List all liabilities with creditor, amount and due date.
  • Go to a free debt counselling centre: Contact a recognised, usually free debt counselling centre rather than commercial debt settlement firms.
  • Negotiate with creditors: With the support of the advice centre, it is often possible to agree on instalment payments or a deferral.
What do I need to watch out for?
  • Commercial "debt settlement firms" often charge high fees for services that recognised debt counselling centres offer free of charge.
  • If you ignore reminders and enforcement orders, you risk an enforceable title that is hard to do anything about later – objection to a payment order must be made within two weeks.
  • A BAföG reclaim notice is a claim like any other: instalment payment or deferral can be applied for at the Bundesverwaltungsamt before enforcement threatens.
Evidence
  • § 287, § 305, § 4a InsO (gesetze-im-internet.de)
  • § 195, § 199 BGB (gesetze-im-internet.de)
  • § 692, § 694 ZPO (gesetze-im-internet.de)
As of

As of September 2026. · Sources and method

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.