restschuldbefreiungsfähige

Restschuldbefreiung, or discharge from remaining debts, is a provision in German insolvency law (Insolvenzordnung, InsO) that releases a debtor from the remaining unsecured obligations after successful completion of insolvency proceedings. It provides a path to a financial fresh start for individuals who cannot fully repay their debts.

Scope and eligibility: It applies primarily in consumer insolvencies (Verbraucherinsolvenz) and in other insolvencies where a debtor adheres to court-approved plans. In Verbraucherinsolvenzverfahren, the debtor enters a three-year period of good conduct (Wohlverhaltensphase) during which they make required payments and cooperate with the trustee. If the debtor fulfills these duties and the plan, the court typically grants the Restschuldbefreiung at the end of the period. In other insolvency cases, relief occurs after the completion of the plan or of the settlement.

Non-dischargeable debts: Not all obligations are released. The Insolvency Code lists debts that remain outside the Restschuldbefreiung, such as certain maintenance obligations (Unterhalt), fines or penalties, and specific costs arising from the insolvency process or from intentional wrongdoing. Some tax debts or other liabilities may also be excluded depending on the circumstances.

Process and effect: The insolvency process is supervised by a trustee; upon fulfillment of duties, the court issues a discharge order, releasing the debtor from further liability for the remaining covered debts. The discharge does not erase non-dischargeable obligations or affect duties to actual creditors secured by collateral, nor does it erase new debts incurred after the discharge.