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SchuldenStop · Mart 2026

Frequently Asked Questions — Debt, Insolvency, P-Konto

Here you will find answers to the most common questions about debt in Germany. All information is general in nature and does not replace legal advice. For your personal situation, you can request a free initial consultation at SchuldenStop.

Debt counselling — general

How does debt coordination work at SchuldenStop?
The process begins with a free initial consultation where your situation is assessed: which debts exist, which deadlines are running, which immediate measures are needed (e.g. P-Konto). SchuldenStop is the regional office Stuttgart of BSD e.V. (Bundesverband Schuldnerhilfe Deutschland e.V.) and coordinates the entire process: debt assessment, budget planning, creditor correspondence. Legal advice and legal steps are carried out by BSD e.V. and specialised insolvency lawyers.

What are the tasks of debt counselling?
Debt counselling identifies all debts and creditors, prepares a budget plan, checks whether claims are justified, negotiates instalments or settlements with creditors, coordinates P-Konto setup and, if necessary, prepares personal insolvency (Privatinsolvenz). SchuldenStop coordinates these tasks within BSD e.V. Legal assessments and expert reports are provided by BSD e.V. and specialised lawyers.

Which documents do I need for the initial consultation?
For the initial consultation, the following are helpful: a list of debts and creditors (as far as you know), income documents (pay slips, Jobcenter decisions), rental agreement and bank statements from the last three months, plus all reminder letters, debt collection notices and court documents. Don't worry — even if you don't have everything, we'll start with what's available.

What is the difference between public and private debt counselling?
Public counselling centres are free but have waiting times of 3 to 6 months. SchuldenStop within BSD e.V. responds faster (24–48 hours) and offers a free initial consultation. Ongoing coordination is provided on fair terms — much more affordable than traditional lawyer fees. Both paths can lead to becoming debt-free — the difference is speed, accessibility and personal attention.

Can debt counselling erase my debts?
Debt counselling cannot erase debts in one stroke. But it can coordinate paths to becoming debt-free: out-of-court settlement with creditors (usually with a significant reduction of total debt) or personal insolvency with discharge of remaining debts (Restschuldbefreiung) after 3 years. Both paths can lead to permanent debt relief.

Do I have to disclose all my debts in counselling?
Yes. A complete list of all debts is essential for successful debt resolution. If creditors are concealed, out-of-court settlement attempts are jeopardised and discharge of residual debt (Restschuldbefreiung) in insolvency proceedings may be refused. All your information is kept strictly confidential.

Is SchuldenStop an approved counselling centre under § 305 InsO?
SchuldenStop is the regional office Stuttgart of Bundesverband Schuldnerhilfe Deutschland e.V. (BSD e.V.). The § 305 InsO certificate required for insolvency applications is issued by BSD e.V. and cooperating specialised insolvency lawyers. SchuldenStop coordinates the entire process.

In which languages does SchuldenStop offer counselling?
Initial consultation and ongoing coordination are available in German and Turkish. The website provides information in 16 languages: German, Turkish, English, Arabic, Romanian, Russian, Bulgarian, Ukrainian, Polish, Croatian/Bosnian/Serbian, Italian, Greek, Albanian and Thai. Solutions are found for other languages too — nobody is turned away.

Account seizure and P-Konto

What should I do immediately if my account is seized?
Immediately request your bank to convert your account to a P-Konto. The bank cannot refuse and must convert within 4 working days. From the moment of conversion, €1,560 per month is protected. After notification of seizure, you have a 14-day protection period — act immediately.

What is an Auskehrungskonto (transfer account)?
An Auskehrungskonto is a sub-account of the P-Konto. If your monthly balance exceeds the protected amount, the surplus is not immediately paid to the creditor — it is first transferred to this transfer account. The following month, this amount is transferred back to your P-Konto. If the balance again exceeds the protected amount, the difference may be paid to the creditor.

Is the P-Konto reported to Schufa?
The existence of a P-Konto is reported to Schufa — but only to ensure there is no second P-Konto (only one per person is allowed). Converting to a P-Konto alone does not cause a negative Schufa entry. Negative entries result from unpaid debts, not from the P-Konto itself.

Can my money still be seized despite having a P-Konto?
Yes — everything above the monthly protected amount (€1,560) can be seized. This is why increasing the protected amount under § 903 ZPO is important — especially for those receiving Kindergeld (child benefit), with maintenance obligations or additional household members receiving social benefits. SchuldenStop coordinates the preparation of this certificate.

Can the bank refuse to convert to a P-Konto?
No. The bank is legally obliged to convert within 4 working days (§ 850k ZPO). Refusing or delaying is unlawful. No additional fees may be charged for the P-Konto — it must be offered at regular account maintenance charges.

Personal insolvency (Privatinsolvenz)

What is the difference between personal insolvency (Privatinsolvenz) and commercial insolvency (Regelinsolvenz)?
Personal insolvency (Privatinsolvenz) is for private individuals and former self-employed persons with few creditors. An out-of-court settlement attempt is required beforehand. Commercial insolvency (Regelinsolvenz) is for actively self-employed persons and companies. In both processes, discharge of remaining debts (Restschuldbefreiung) is possible after 3 years. SchuldenStop coordinates determining which process is right for your situation.

Can I file for personal insolvency as a self-employed person?
Currently active self-employed persons must file for commercial insolvency (Regelinsolvenz), not personal insolvency. Former self-employed persons who have ceased business can use personal insolvency (Privatinsolvenz). In both cases, the period to discharge of residual debt (Restschuldbefreiung) is 3 years. SchuldenStop coordinates the review through BSD e.V. and specialised lawyers.

What happens to my home during insolvency?
If you are renting, your home is not at risk. The insolvency trustee (Treuhänder) only checks whether the rent is appropriate. However, if you own property (house, flat), it may be included in the insolvency estate and sold. The effects on your housing situation are discussed in detail during the initial consultation.

Can I work during insolvency?
Yes, in fact you are required to — you must work in a reasonable job or actively seek employment. Your income up to the seizure-free amount (net €1,555 for a single person without maintenance obligations) remains entirely yours. Only the seizable portion is transferred to the insolvency trustee (Treuhänder).

Which debts are not discharged in the Restschuldbefreiung?
Debts excluded from discharge include: fines from criminal convictions, debts from intentional tortious acts (e.g. fraud) and tax debts based on tax evasion. All other debts — loans, debt collection, rent, energy, telephone — are fully discharged after 3 years.

Debt collection and payment orders (Mahnbescheid)

Do I need to respond to a debt collection letter?
You should take every debt collection letter seriously and review the claim. Not every collection claim is justified — inflated costs, time-barred claims or incorrect amounts are common. Do not ignore collection letters, as the next step is usually a court payment order (Mahnbescheid). If in doubt, have the claim reviewed.

Are debt collection costs always justified?
No. Collection agencies may only charge as much as a lawyer could under the Legal Fees Act (RVG). Inflated reminder costs, processing fees or account management charges are frequently unjustified. If you have doubts about the amount of a collection claim, have it reviewed.

What happens if a bailiff (Gerichtsvollzieher) comes?
A bailiff can only come if the creditor has an enforcement order (Vollstreckungstitel) — for example, an enforcement notice or court judgment. The bailiff can seize attachable assets and request an asset declaration. Essential household items (clothing, furniture, refrigerator, washing machine) are protected and cannot be seized. You must allow the bailiff entry — do not refuse access.

Rent and energy debts

What happens with rent arrears?
If two months of rent arrears accumulate, the landlord can terminate immediately. An eviction lawsuit may follow. Rent debts are priority debts and take precedence over all other obligations. If you have rent arrears, act immediately — speak with your landlord and seek professional help.

Can the energy company cut off my electricity?
Yes, if the debt exceeds twice the monthly advance payment or €100. The disconnection must be announced 4 weeks in advance and notified 3 days prior. If your electricity is cut off, you can try to arrange an instalment plan with the energy provider. Energy debts, like rent debts, are priority debts.

Other guides

Account seizure — emergency help
P-Konto protected amount 2026
Personal insolvency — process, duration and costs
Debt resolution without insolvency
Objection to payment order (Mahnbescheid)
Debt in Germany — your rights

This page is for general information only and does not constitute legal advice. SchuldenStop coordinates with Bundesverband Schuldnerhilfe Deutschland e.V. and cooperating specialised lawyers. All information is provided without guarantee. March 2026.