Seizure: In most cases, the debt collection office seizes the debtor's wages, that is the income above the subsistence minimum, for a maximum of one year. The money usually stays with the debt collection office until the end of this period. We then receive it and, after deducting the debt collection costs, pass it on to the investors. If the amount is not sufficient, the office issues a certificate of loss for the rest. We then request a further seizure for as long as this is possible.
Bankruptcy: For debtors who are subject to bankruptcy proceedings, for example those with a sole proprietorship, the debt collection office serves a notice of bankruptcy. If the debtor does not pay and does not reach a payment agreement with us, we apply to the court to open bankruptcy proceedings. The bankruptcy proceedings are conducted by the bankruptcy office. They often take several months, sometimes more than a year. Whatever is paid out to the creditors from the bankruptcy, we pass on to the investors. For the uncovered remainder, we receive a certificate of loss.
We keep you informed of every step.