Credit after residual debt discharge

The discharge of residual debt is the last step within a private insolvency, the so-called consumer insolvency. The legal basis for this is section 301 of the insolvency code. The granted discharge of residual debt is effective against all insolvency creditors, regardless of whether they have filed their claim or not. As a result of the discharge of residual debt, the creditors' claims become natural liabilities that can no longer be enforced. De facto, following insolvency, the debtor is exempt from the obligation to pay his debts. Conversely, the creditor has no legal claim to enforce his claim. As it is colloquially called, can be started again from scratch after the discharge of residual debt.

At what point are you creditworthy again?

The person concerned has unrestricted access to his income after the discharge of residual debt. This includes the portion above the garnishment exemption limit that had to be paid to the trustee during the six-year WVP, the period of good conduct. This improves the credit rating from this point of view. It is the economic capacity to repay a borrowed loan on time and in full. However, for the assessment of creditworthiness by banks and savings banks, income is only one of several bases.

With the exception of a few online banks, all other credit institutions are a business partner of the private credit agency schutzgemeinschaft fur allgemeine kreditsicherung, or schufa for short. They base their credit rating on the schufa score. This is a calculated value of all entries in the schufa database, summarized in percentage points. The further the score is away from the best mark of one hundred percent, the weaker it is.

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Residual debt discharge and the schufa

All information on the financial spending behavior of the individual citizen is entered in the schufa database on a personal basis. This includes, in addition to all liabilities, the private insolvency itself. This situation lowers the score to a few percentage points, which means a decidedly bad credit rating. The granting of residual debt discharge is entered in the schufa database for three years. The registered liabilities are provided with a note for the discharge of residual debt. A look at the schufa therefore shows the current situation and the reason for the low schufa score.

Following the discharge of residual debt, the creditworthiness can be described as an individual decision of the individual credit institution and the case officer there. If he or she is guided solely by the schufa score, then the prospects for the next two or three years are extremely poor. Decisive is the income situation of the credit seeker. A regular and secure monthly income visibly above the garnishment exemption limit can significantly improve creditworthiness and certainly make up for the rather statistically low schufa score. It is also helpful to explain and justify the private insolvency. The less consumer debt has led to this, the greater the confidence in the creditworthiness.

Loss of job or inability to work are events that can lead to personal insolvency, although the person concerned has managed prudently and responsibly. The reason for taking out a loan directly after the discharge of residual debt is also decisive. The necessary car loan, in order to be able to commute with the vehicle daily to the place of work, is more understandable than a consumer credit for the vacation, or a credit without any earmarking. The applicant must make it clear with his loan application that he does not want to consume the money, but needs it for a specific purpose. At best with the credit an equivalent value should be created, whereby its utilization possibility is subordinate.

Conclusion on residual debt discharge

In summary, there is no fixed requirement for a yes or no to taking out a loan following the discharge of residual debt. With a credit without schufa, which is offered by some german as well as by foreign on-line banks in the middle four-digit euro range, this criterion of the lacking credit-worthiness is void. And on the online platforms for a P2P loan, the personal loan from private lenders, the creditworthiness is also assessed significantly differently than on the commercial credit market. The credit seeker should not be discouraged under any circumstances, not even by the one or other rejection.