At the end of a personal bankruptcy, many people ask themselves: Will I know when the process is over? Court orders to annul and discharge residual debts are made public – usually online. There is no personal notification and entries can remain in the credit agencies for years.
End of the insolvency proceedings: court order and public announcement
For many of those affected, the end of personal bankruptcy marks the beginning of a debt-free period. The basis for this is Section 200 of the Insolvency Code, which stipulates that the insolvency court terminates the proceedings after the final distribution by means of a formal resolution. This decision also contains the reason for termination and will be made public. The publication takes place, among other things, via the official portal insolvenznachrichten.de, as described by the Regensburg Chamber of Commerce and Industry. Only then can the decision about the discharge of residual debt be made in a separate step.
Discharge of residual debt: decision and notification
Discharge of residual debt is the decisive step with which debtors are finally released from their remaining liabilities. According to Section 300 of the Insolvency Code, the insolvency court decides either after the assignment period has expired or, in certain cases, early. The corresponding decision will also be made public in accordance with Section 300 Paragraph 4 and can therefore be viewed by everyone. According to the consumer advice center, this publication is an integral part of the procedure and serves to ensure legal transparency.
Who is informed – and how long the data is visible
According to Section 3 of the Ordinance on Public Announcements in Insolvency Proceedings on the Internet (InsoBekV), the public announcement of an insolvency or residual debt discharge decision is initially made in a freely accessible form for a limited time. After that, the information can only be searched to a limited extent. Creditors and other parties involved in the proceedings also receive the decision directly from the court. However, personal communication to uninvolved third parties is not intended, as the Regensburg Chamber of Commerce and Industry explains.
Consequences for credit agencies and creditworthiness
Credit reporting agencies are allowed to take information from public announcements regarding the granting of a discharge of residual debt and store it for credit ratings. According to the ruling of the Frankfurt am Main Regional Court of December 20, 2018, storage is generally permitted for up to three years. With the residual debt discharge, the old debts recorded in the procedure are forgiven (Section 301 InsO), but the corresponding entries can still be taken into account during this period in credit decisions, rental inquiries or other credit checks. This can limit the debtor’s economic opportunities even after the proceedings have ended. After the storage period has expired, there is usually a right to deletion in accordance with the General Data Protection Regulation, provided there are no legitimate reasons for further storage. This right is intended to make a new beginning easier and support the return to regular economic activity.
Editorial team finanzen.net