Collective debt settlement
What is collective debt settlement?
If you fail to solve your money problems and pay off your debts, you can apply for collective debt settlement. The labour court will assign you a lawyer as debt mediator. Through a repayment plan , this will help you pay off your debts. Despite high debts and the pressure that goes with them, you can lead a dignified life.
The debt mediator receives your salary. With it, he pays you living expenses and pays off your debts. In principle, a collective debt settlement lasts a maximum of 7 years. What is not repaid by then is usually cancelled. However, some debts such as maintenance and penal fines cannot be cancelled.