What happens to a judgment during bankruptcy
Debt discharge granted: what's next?
3. What happens after the discharge of residual debt?
If the court has given you discharge of your remaining debts after bankruptcy proceedings, you have your goal achieved: You are rid of your remaining debts and your creditors. You no longer have to hand over any of your wages to the trustee or insolvency administrator and you no longer have to comply with your cooperation and reporting obligations.
What happens to my creditors' outstanding claims?
If the remaining debt is granted, the court will forgive you all outstanding debts that you have before bankruptcy proceedings had. If one of your bankruptcy creditors demands that you settle an old claim, you can ignore this or send him the decision from the bankruptcy court.
According to Section 302 of the Insolvency Act (InsO), there is an exception for illegal acts,Fines, Fines and Guaranteesthat third parties have taken over for you - these do not expire due to the discharge of the remaining debt.
What does the discharge of residual debt mean for new debts?
Debt relief applies not for new debtsthat arise during the conduct phase. Despite the granted residual debt discharge, new debts continue to exist even after the bankruptcy has been successfully terminated.
If you got into debt again, keep the following in mind:
- Pay off new debts - because a garnishment or foreclosure is possible despite the discharge of residual debt.
- Be careful not to fall into the debt trap - according to § 287a InsO, a renewed exemption from the remaining debt is not possible in the next 10 years.
Who himself during bankruptcy proceedings inappropriately newly indebted, must reckon with the fact that the court will deny him the discharge of the remaining debt.
What happens to the outstanding procedural costs?
If the court has granted you discharge of your remaining debts without paying the procedural costs, you must open feessettle. The court will regularly ask you whether you can bear the costs.
If there is less wealth, there is one Installment payments possible. If you have no assets even after the discharge of the remaining debts has been granted, the court will waive the deferred procedural costs in full.
When will the discharge of residual debt be deleted from the Schufa?
If the bankruptcy court has granted you discharge of your remaining debts, there is a negative entry about this at Schufa. If you want to delete a Schufa entry, this is it only 3 years after the debt relief was granted possible - d. H. possibly 9 years after filing for bankruptcy.
Schufa usually rejects premature deletion - but first court rulings confirm this Right to earlier deletion the granted residual debt discharge in individual cases, for example in the case of prolonged mental illness. The Regional Court of Frankfurt am Main ruled in a judgment dated December 20, 2018 (Az. 2-05 0 151/18):
Since the plaintiff's debts arose during a lengthy mental illness, he has a so-called “right to be forgotten” according to the GDPR - also with regard to a Schufa entry. In this case, the rights and freedoms of the consumer outweigh the interests of Schufa.
Although the judgment does not lead to a general right to cancellation, it can increase the chances of success for the action against the Schufa.
When will I get a loan again?
Although you have been granted the remaining debt discharge, taking out a loan - e. B. for a car financing - be problematic. As a rule, the bank first asks the Schufa about your creditworthiness.
Since the entry on personal bankruptcy remains in place for several years even after the discharge of residual debt has been granted, this has one negative impact on creditworthiness - with the result that the bank can refuse the loan.
3 years at the latest However, after the court has granted discharge of the remaining debt, the entry at the Schufa will be deleted - and your chances of getting a loan increase again.
4. How long does it take for the discharge of residual debt to become legally binding?
As a rule, the bankruptcy court grants the remaining debt discharge on the last date of the proceedings. However, the grant is not legally binding until the debtor has received the decision and no complaint within 2 weeks inserts.
This means that the conduct of business phase usually ends after 3 years with the granting of the remaining debt discharge.
With the granting of the remaining debt discharge, you are released from all debts that existed before the bankruptcy proceedings. Your creditors can no longer assert any old claims. You also no longer have to meet your obligations to cooperate and report unless you apply for a further deferral of the procedural costs.
If you have been granted discharge of residual debt, old claims are no longer valid. However, you should settle new debts that you took on after the bankruptcy - because these can still be garnished despite the discharge of residual debt.
The Schufa entry about the personal bankruptcy is noted as “done”, but remains in place for another 3 years even after the residual debt has been discharged. The conclusion of loans or contracts can therefore turn out to be problematic despite the discharge of residual debt - because banks often refuse to grant loans due to a negative credit rating.
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