Personal bankruptcy. With the granting of such an exemption, the insolvent person is confirmed that he is free of debt after the insolvency proceedings have been completed.
This enables her to start financially from scratch without the burdensome burden of the old mountains of debt.
The requirements for a debt relief are:
- Submission of an application for exemption from residual debt (it should be submitted at the same time as the application to open insolvency proceedings)
- End of good behavior (usually 6 years)
- Strive for a job and if possible exercise a reasonable, professional activity
- Assignment of the attachable part of the salary
- Avoidance of any bankruptcy offenses (e.g. concealment of income)
If these requirements are met, the debt relief can be issued by the bankruptcy judge. This means that you are debt-free, but you have to consider certain things if you plan to finance your home again after bankruptcy.
Current mortgage rate
If Credit Bureau remains registered, the bank will find out about it and ask how creditworthy you are as an applicant.
If you do not want to wait for the Credit Bureau entries to be deleted, you can also try to set up building finance in the following ways:
- Construction financing through a third person (e.g. the spouse)
- Taking out a personal loan (with relatives, friends)
- Talk to the bank
Perhaps reasons have led to personal bankruptcy that were beyond your own responsibility. Then it can make sense to sit down with the bank and point out such reasons. The bank may then be prepared not to place as much weight on the entries at Credit Bureau and to place more weight on other factors.
- If you want to use the bank to provide mortgage financing despite bankruptcy, you should talk about existing collateral such as a secure job, high income, financial support from your parents or life insurance in which someone was used as a beneficiary.
The safest variant remains to be seen until the Credit Bureau entries are deleted after three years. To ensure that they have really been removed after this period, you should first request a self-assessment from Credit Bureau before applying for a loan.