It is not easy to get a personal bankruptcy loan. The reasons are very plausible. Those who had to file personal bankruptcy proved that in the past he was unable to pay their debts to private or institutional creditors on their own and in full.
These are conceivable bad conditions to be able to take out a loan. All reputable German banks conduct a private credit with their customers and are therefore very quickly noticed that a loan applicant is in private bankruptcy. The consequence of this is that they will reject the loan application even if a secure income is available.
Private insolvency, conduct of business and discharge of residual debt
Since 1999, not only entrepreneurs, but also private individuals have the opportunity to file for bankruptcy with their competent district court. If the conduct phase was initially seven years, it has now been shortened to six years. During this time, insolvent individuals must accept all reasonable work, report a change of job or place of residence, and transfer all income in excess of the legal seizure limit to their liquidator.
For this reason, they will have no money left in the conduct phase to pay regular monthly installments for a personal bankruptcy loan. In addition, it should be noted that an exemption from residual debt can only be granted if no new financial obligations have been entered into during the conduct of business and no new debts have been incurred.
If all conditions are properly met, the District Court may decide to grant the discharge of residual debt at the end of the six-year good conduct phase. However, this does not mean that the person concerned is immediately creditworthy again. A corresponding negative entry in the private credit, which proves the private bankruptcy and the subsequent discharge of residual debt, will be deleted only after three years.
If you want to contact a private credit intermediary or a foreign bank to get a personal bankruptcy loan despite all the difficulties, you should think carefully about whether there really is no other alternative. If all or part of the payment obligations associated with a personal bankruptcy loan are not met, this can have serious consequences, ranging from a loan cancellation to a fraud report.
Anyone who takes out a loan or makes other financial commitments that they know they are unlikely to meet will be punishable. Nevertheless, if a loan is to be taken out in private bankruptcy, it absolutely must be ensured that the loan amount and the repayment installments are relatively small. The latter must be paid out of the non-disposable portion of the monthly income and with money, which is then no longer available for livelihood.