Frequently asked questions about debt adjustment
Your debt does not need to be subject to enforcement for you to be eligible for debt adjustment.
Debt adjustment can be granted even if you are unemployed.
Most often, debt adjustment is possible only after some years have passed from the time the debt was incurred. Debt becoming subject to enforcement often breaks the debt spiral and brings clarity to the situation.
The amount of debt is not the sole criterion for granting debt adjustment. A debt adjustment is the final possibility for restructuring your debts. Before applying, you must determine if you can pay your debt in a reasonable time in some other way. Decisions on debt adjustment are made after a holistic deliberation.
Debt adjustment is the final possibility for restructuring your debts. Before applying, you must determine if you can pay your debt in a reasonable time in some other way. Decisions on debt adjustment are made after a holistic deliberation.
A creditor objecting to debt adjustment does not necessarily prevent it from being granted. The decisions are made after a holistic deliberation. The district court will provide you with an opportunity to express your view on the matter.
A calculation of your available funds will be made on the basis of your income (e.g., salary, pension, benefits) and expenses for the purposes of the payment scheme. Available funds are the amount of money you have at your disposal for repaying your debts each month. The amount of available funds is always personal and varies according to your personal situation.
Your entire family is considered in the calculation of your available funds. The income of your spouse affects how your shared expenses are divided in the calculation. Your spouse does not have to pay debts that are solely in your name. If you have joint and several debts with your spouse, and your spouse is a guarantor of your debt or has issued a guarantee, the situation is different.
Marriage and cohabitation affect the division of expenses in the calculation of available funds. The expenses of a married couple are divided in proportion to their net income. The expenses of a cohabiting couple are divided in half. The expenses of a couple’s children are always divided in proportion to the couple’s net incomes, regardless of whether they are married or cohabiting.
If the amount of your expenses approved for your debt adjustment exceeds the amount of your income, you have no available funds. If you have no available funds, you can be granted a ‘zero scheme’.
The duration of a debt adjustment is usually three to five years. Individual circumstances may affect the duration. If the debtor retains their owner-occupied home during debt adjustment, the duration is usually longer.
A debt can be added to your payment scheme retroactively if the debt should have been included in the original payment scheme. Debts incurred before the commencement of debt adjustment are included in the process.
The amount of housing expenses is usually not updated on the payment scheme, so it is recommendable to keep housing expenses at a consistent level. If you are considering moving from your owner-occupied home, contact financial and debt counselling.
Yes, you can. The assets from selling the home are primarily used to repay any secured debt, the costs of selling the home, and any possible taxes. After these, the amount is used to pay other debt included in your payment scheme.
The additional payment obligation is part of the debt settlement, which is explained in the payment plan. If your income increases, be prepared for any extra payments by saving. Read more about additional payments.
It does not.
Decisions on a debt adjustment are made after a holistic deliberation. The grounds for rejecting your application can affect your case. Read the grounds for the decision and discuss your case with a financial and debt counsellor.