In Germany, can I file for insolvency if I’m behind on rent and loan payments?

Thank you for reaching out — I’m sorry you’re dealing with this stress, and you’re not alone. Yes, consumer insolvency (Verbraucherinsolvenz) can be an option in Germany if you’re unable to keep up with rent, loans, and credit card debt. It is designed to give individuals a structured way to deal with overwhelming debt and ultimately obtain a discharge. If creditors are calling frequently or you’re worried about wage attachment (Pfändung), it’s important to act early, as certain protections begin once formal steps are taken.

The process usually starts with an out-of-court settlement attempt with creditors, which is required before filing. If that fails, an insolvency application is submitted to the court. Once proceedings are opened, collection actions such as wage garnishment are generally paused. In most cases today, the “good conduct” period lasts three years, after which remaining eligible debts can be discharged, provided the requirements are met. The next step would be to review your full financial situation and debts to confirm eligibility and prepare the settlement attempt. I’d be happy to explain this in more detail and walk you through what applies specifically to your situation.

Sincerely,
Ascendance International Consulting