Of insolvency one speaks, if the debts of the applicant for the credit exceed its sellable fortune and/or seizable income. With a natural person an insolvency is given, if liabilities with the Veräußerungs-Erlös of its enforcement-legally usable fortune (enforcement) and the seizable amounts wage and/or Gehaltspfändung of the next six years cannot be fulfilled presumably.
In such a situation the possibility exists of requesting a judicial insolvency procedure with a balance of debt freeing after six years a lasting trust time („good behavior period “). Attorneys or nationallegally recognized debtor advisory boards (debtor consultation or insolvency consultation) offer assistance.
The increasing indebtedness of private households is one of the principal reasons for renting losses.
The insolvency of enterprises can give cause for closing downs, fusions, trust, concentration of enterprise and assumptions.