💶 Debt caused by addiction

Addiction and debt are often linked. What debt counselling does, how personal insolvency works and what applies to gambling debts.

debt counselling discharge of residual debt § 287 InsO personal insolvency gambling debts

In brief

Addiction and over-indebtedness often interact: addiction can lead to debt, and financial hardship can increase the urge to use. According to debt advice centres, illness (including addiction) is, besides unemployment, a frequently cited main cause of over-indebtedness – but there is no exact nationwide statistic specifically on addiction-related debt.

For people receiving Bürgergeld/Grundsicherungsgeld, debt counselling is a local-authority integration benefit; specialised debt counselling only for people with addiction is not specifically provided for by law. Anyone who has run up private debts can, through insolvency proceedings, achieve discharge of residual debt (Restschuldbefreiung) after as a rule three years.

Step by step

Contact debt counsellingVia Caritas, Diakonie, AWO, Verbraucherzentrale (consumer advice centre) or – if you receive SGB II benefits – via the Jobcenter (§ 16a SGB II).
Get an overview togetherTake stock of all claims, check for immoral or ineffective claims (e.g. in the case of gambling-debt loans).
Try an out-of-court settlementBefore insolvency proceedings, an attempt at out-of-court debt settlement usually comes first.
If necessary, file for personal insolvencyAfter the assignment period (as a rule 3 years) has ended, discharge of residual debt can be achieved.

Deadlines

3 years

Standard length of the assignment period until discharge of residual debt for insolvency applications from 1 October 2020.§ 287 Abs. 2, § 300 InsO

discretionary benefit

Debt counselling is provided for in SGB II as a local-authority integration benefit if it is necessary for integration into work – not an unconditional legal entitlement for everyone.§ 16a Nr. 2 SGB II; BSG, judgment of 21 July 2021 – B 14 AS 18/20 R

§ 138 BGB

A loan specifically to finance gambling can be immoral and therefore void if the lender acts out of its own profit motive.§ 138 BGB; leading case BGH, judgment of 9 February 1961 – VII ZR 183/59

Watch out – common mistakes

There is no separate, statutory "debt counselling for people with addiction" – it is mostly general debt counselling in cooperation with addiction services.
§ 762 BGB (imperfect obligation arising from games and bets) concerns only the gambling debt itself, not a loan taken out to finance gambling – other rules apply here (§ 138 BGB).
For insolvency applications before 1 October 2020, the old 6-year rule with the possibility of shortening still applies, not the 3-year rule.

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

Link between addiction and debt

Debt advice centres and welfare associations regularly describe addiction as one cause of over-indebtedness, without a nationwide uniform, officially verified statistic on its exact frequency.

Debt counselling as an integration benefit

§ 16a Nr. 2 SGB II lists debt counselling as a local-authority integration benefit if it is necessary for integration into work (confirmed regarding cost coverage by BSG, judgment of 21 July 2021, B 14 AS 18/20 R). Outside SGB II, general debt counselling mostly runs through advice centres run by local authorities or welfare associations under state law.

Personal insolvency

For proceedings with an application from 1 October 2020, the standard length of the assignment period until discharge of residual debt is three years (§ 287 Abs. 2 InsO); the discharge itself is granted under § 300 InsO; § 287a InsO regulates a good-faith check, and §§ 290, 297 ff. InsO name grounds for refusal. For old proceedings, the former 6-year rule with possibilities of shortening still applies.

Gambling debts

The gambling debt itself is, under § 762 BGB, an "imperfect obligation" (not enforceable in court, but not automatically void). A loan taken out specifically to finance gambling, by contrast, can be immoral and void under § 138 BGB if the lender acts out of its own profit interest – the leading decision on this is BGH, judgment of 9 February 1961, VII ZR 183/59; no more recent development by the highest courts was found in the research. On claims for recovery from illegal online gambling see "Gambling addiction".

Uncertain/not conclusively clarified

A reliable official statistic on the share of addiction-related over-indebtedness cases, and a nationally uniform category "specialised debt counselling for people with addiction", could not be found.

Who is responsible

General debt advice centre (Caritas, Diakonie, AWO, Verbraucherzentrale)
Jobcenter (cost coverage under § 16a SGB II when receiving Grundsicherungsgeld)
Insolvency court (personal insolvency proceedings)

Quick questions

Worum geht es bei „Debt caused by addiction“?

Addiction and debt are often linked. What debt counselling does, how personal insolvency works and what applies to gambling debts.

Which deadlines and figures matter?

3 years: Standard length of the assignment period until discharge of residual debt for insolvency applications from 1 October 2020. (§ 287 Abs. 2, § 300 InsO)
discretionary benefit: Debt counselling is provided for in SGB II as a local-authority integration benefit if it is necessary for integration into work – not an unconditional legal entitlement for everyone. (§ 16a Nr. 2 SGB II; BSG, judgment of 21 July 2021 – B 14 AS 18/20 R)
§ 138 BGB: A loan specifically to finance gambling can be immoral and therefore void if the lender acts out of its own profit motive. (§ 138 BGB; leading case BGH, judgment of 9 February 1961 – VII ZR 183/59)

What should I do first?

Contact debt counselling: Via Caritas, Diakonie, AWO, Verbraucherzentrale (consumer advice centre) or – if you receive SGB II benefits – via the Jobcenter (§ 16a SGB II).
Get an overview together: Take stock of all claims, check for immoral or ineffective claims (e.g. in the case of gambling-debt loans).
Try an out-of-court settlement: Before insolvency proceedings, an attempt at out-of-court debt settlement usually comes first.

What do I need to watch out for?

There is no separate, statutory "debt counselling for people with addiction" – it is mostly general debt counselling in cooperation with addiction services.
§ 762 BGB (imperfect obligation arising from games and bets) concerns only the gambling debt itself, not a loan taken out to finance gambling – other rules apply here (§ 138 BGB).
For insolvency applications before 1 October 2020, the old 6-year rule with the possibility of shortening still applies, not the 3-year rule.

Evidence

§ 16a SGB II; BSG, judgment of 21 July 2021 – B 14 AS 18/20 R
§§ 287, 287a, 300 InsO (gesetze-im-internet.de)
§ 138, § 762 BGB; BGH, judgment of 9 February 1961 – VII ZR 183/59

As of

As of September 2026. · Sources and method

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