Legal fees for private bankruptcy

Image result for money graphic

The legal costs of private insolvency must be paid by the debtor.

For over-indebted individuals, private bankruptcy is often the only way to get rid of the piled-up debt mountain . At the end of the insolvency proceedings, the remainder of the debt freeze – this means that (almost) all outstanding debts are waived .

However, debtors should be aware that personal bankruptcy is a lengthy and deprivation-rich process .

In addition, the following should be noted: For a private bankruptcy court fees, expenses and costs for the remuneration of the insolvency administrator .

Who bears the costs for a claimant?

What many laymen do not know: Not only the debtor himself can apply for the opening of private bankruptcy. Even a creditor can do so if he has a legal interest in having the case open, and he can make his claims and reason for disclosure credible .

But what about the legal costs of personal bankruptcy in this situation ? Does the creditor have to carry it completely himself if he makes a request for the opening of the procedure?

According to Annex 1 to the GKG, the procedure for the application for opening insolvency proceedings filed by a creditor incurs a 0.5 fee, but at least 180 euros . If the debtor also wants to file an application because he wants to obtain the residual debt exemption, he must pay an additional 0.5 fee. If the debtor is insolvent, the creditor can be claimed as the second debtor for this amount .

Should it happen that the request for creditors is withdrawn or rejected , the creditor is also obliged to pay the costs for the expenses already incurred .

What happens if the court costs can not be paid?

According to ยง 26 (1) of the Insolvency Code , debtors must pay attention to the following:

The insolvency court rejects the application to open insolvency proceedings if the debtor’s assets are not expected to cover the costs of the proceedings.

Thus, if the bankruptcy estate is insufficient to allow the court costs for private bankruptcy to be paid out , the application will be dismissed . Does that mean, however, that destitute debtors who have no assets have no chance of going through private bankruptcy?

In order for every person to be able to get rid of their debt through the exemption from residual debt, the legislator has created a possibility that allows anyone, irrespective of their financial situation, to register their personal bankruptcy .

If the property is (presumably) insufficient to pay for the court costs, expenses etc. incurred for the private bankruptcy, the person concerned has the option of applying for deferment of the costs of the proceedings .

This application must be filed with the competent bankruptcy court . There, debtors also receive the required form . However, it can also be downloaded easily and conveniently on the Internet .

If the deferral of the court costs is granted in the case of personal bankruptcy, this means that the debtor generally does not have to make any additional payments until the remainder of the debt has been discharged . Rather, money from the bankruptcy estate (if any) and from the attachable income flows into the pot from which the legal costs are paid.

The amount of court costs in private bankruptcy are influenced by the bankruptcy estate.

We have already clarified who has to bear the legal costs of a personal bankruptcy and what happens if the debtor is not able to bear them. Now the important question is, how high the costs for the court actually turn out exactly .

First, the following must be noted: A blanket statement valid for each case can not be given . Depending on the individual case, the court costs for private bankruptcy are different. We will now go into that in more detail.

As a general rule, court costs and expenses are incurred in court for bankruptcy proceedings. With the court costs, the work of the court is paid and the expenses include costs for copying, printing, sending files, travel expenses and many other expenses.

How much money can be demanded for which expenses is legally stipulated in Annex 1 to Section 3 (2) of the German Law on Costs for Legal Expenses (GKG). For example, the flat rate for the costs of transport and packaging for each shipment when sending files on request is 12 euros (No 9003). Since different costs can arise in each insolvency procedure, their amount can thus be difficult to predict on a flat-rate basis.

The amount of court costs for private bankruptcy are also recorded in the cost list (main section 3: Bankruptcy proceedings). The directory shows exactly what fee is set. For example, if the debtor files a petition for bankruptcy , a 0.5 fee will be charged ; in the case of bankruptcy, it will be a 2.5 fee.

But what does that mean exactly? In order to calculate the fee according to the cost list, it is first necessary to take a look at the fee table in GKG . There, the corresponding fees are recorded and these depend on the amount of the value in dispute . The value in dispute in private bankruptcy is the insolvency estate.

If the value has been read from the table, then the cost estimate must be used. A 0.5 fee means that half the value of the amount found in the fee table is payable . For a 2.5 fee, the sum must be multiplied by a factor of 2.5.

The court costs for private insolvency thus depend significantly on the amount of the bankruptcy estate . The larger this is, the more expensive the bankruptcy.