Personal insolvency
4 tasks in suggested order
1. Check whether court debt settlement proceedings are necessary
What is commonly called 'personal bankruptcy' is legally a debt settlement proceeding (Schuldenregulierungsverfahren) and is intended for natural persons who do not operate a business. The proceeding is not opened automatically; an application is required.
Private individuals have no statutory duty and no general deadline for filing for insolvency. According to the official information, the 60-day deadline in the event of insolvency applies only to entrepreneurs.
The locally competent district court; as a rule, the competent court is the district court in whose district the debtor has their habitual residence when the application is filed.
Before applying, record the financial situation completely and use the official forms and requirements for the specific procedure.
Debt settlement proceedings are court insolvency proceedings. Before applying, advice from a state-recognised debt counselling service is advisable, especially if an out-of-court solution may still be possible.
Official source: oesterreich.gv.at
2. Involve a state-recognised debt counselling service
The free state-recognised debt counselling service can review the situation, assist with out-of-court solutions and, where necessary, prepare you for court proceedings.
If possible, before filing the insolvency application.
State-recognised debt counselling service.
List of creditors, debt balances, income, assets, ongoing expenses and any available reminder, enforcement and court documents.
Not every debt counselling service is state-recognised or free of charge. Look for the official debt counselling quality mark.
Official source: oesterreich.gv.at
3. Disclose assets, debts and creditors completely
For court proceedings, the financial circumstances must be presented fully and transparently. In particular, a complete picture of assets and debts is required.
Before filing the application and keep it up to date during the proceedings.
For the application to the competent district court; during preparation, together with the debt counselling service.
Creditors and claims, income, assets, ongoing obligations, and the statement of assets and other evidence required for the chosen procedural route.
Do not omit any creditors, assets or liabilities. The specific forms depend on how the proceedings are to be opened.
Official source: oesterreich.gv.at
4. File the application correctly with the district court
Under the official rules, the application can be submitted in writing or electronically, or recorded formally at the court. Depending on the route chosen, additional requirements may apply, such as an advance on costs.
When, after advice and review, court debt settlement proceedings are actually to be initiated.
Competent district court for the habitual residence.
Use the appropriate official application form and all required attachments.
Once proceedings are opened, key procedural data are published in the insolvency register. Clarify the legal consequences and the specific procedural route before filing the application.
Official source: oesterreich.gv.at
