"Help in a financial emergency" - contact points and people to turn to for those affected

Anyone can fall into financial hardship, and neither legal nor various private institutions can prevent it. Whether self-inflicted or not, there are a number of unfortunate events in life that contribute to a money crisis. The following factors can be responsible for a catastrophic personal and material bankruptcy. The main issue here is often unemployment, alcohol addiction and drug use, and some people also go through painful separations from spouses or life partners. Other causes can be illness and accidents. One thing is certain: it all begins with debt. It is accompanied by looming garnishment and leaves those affected sinking into endless hopelessness. Even simple necessary purchases or repairs around the house can no longer be managed on their own.

Submit an installment and/or deferral request to your creditors. The difference between the two:

  • a deferral asks for a grace period; it suits smaller debt amounts, but interest is added on top
  • The installment payment version of financial emergency help is advisable for medium to heavy financial burdens

It's not for everyone, but it can bring minimal relief for a certain time. Many people collect carelessly discarded empty bottles and cans from the ground, even from the trash cans. A trip to a pawn shop usually can't be avoided either. Here your belongings usually stay for three months, after which the loan can be extended or the items go to auction. NOTE ON FINANCIAL EMERGENCY HELP: You can have the proceeds paid out to you after deducting the loan and interest. Debt counselors or foundations are also available to you as an additional option.

Help in a financial emergency

"Help in a financial emergency" - how it works

All sums from repayment obligations are referred to as debt. Contact with an insolvency counselor can be made through non-profit organizations, commercial companies, statutory institutions, private associations and legal advisers. Note that qualifications, capacities and variable fees differ from provider to provider. In Germany, under § 11 para. 5 SGB XII and § 16 para. 2 SGB II, municipalities are legally required to offer debt counseling. The two counseling approaches are divided into specific services and general integrated social support for young people and families. Under § 305 of the German Insolvency Code (InsO), a petition for insolvency is the responsibility of state-qualified experts. The foundation route to relief focuses on the complete restructuring of debts with a fresh economic start.

Financial emergency help - GOOD TO KNOW:

For debts of any kind in Germany, a general limitation period of three years applies. This also includes claims for damages, which may lose their validity. The cut-off date for the limitation of claims is December 31. If the creditor has obtained a court judgment against you, the period can even be 30 years. In individual situations, an extension of the period is possible. It can likewise be interrupted and expire later.