Bancruptcy of individuals

Debt after bankruptcy is deferred for two years

• Debts that are not paid at the exchange expire (fall) after 2 years from the end of the exchange, unless the expiry is terminated.

• An individual can terminate the limitation in these two years by paying off or recognising a debt. Wage deduction does not terminate the limitation

• The claimant can only terminate the limitation by obtaining a judgment recognising the termination of the limitation. There are strict conditions for obtaining such a judgment.

• Claimants may continue to collect in the two-year limitation period.

• The two-year limitation period does not apply to the claims of the Student Loan Fund.

Wage deduction

The tax has the authority, to require the employer to deduct up to 75% of the wages due to unpaid parliamentary and municipal fund fees.

The District Commissioner has the right, to require the employer to deduct up to 50% of the wages due to the child maintenance debt.

A payment plan for the reduction of wage deductions can be made with the tax office and the Commissioner, and this does not break the statute of limitations.

The District Commissioner may decide that alternative punishment of a fine will be applied during the 2 year expiry period.

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