Debt relief for heavily indebted individuals after three years

Borrowers are better off than long creditors. This was the so-called financial crisis, which is in fact a monetary system crisis, all of us out dramatically before our eyes, hopefully those people who, with the state-monopolized monetary system are not so familiar.

Reduce interest rate in favor of government debt

First, push the state central banks, led by the U.S. Fed, for many years, the interest on the borrowing in favor of the state debt and the commercial banks down firmly so that the States' ever-rising debt can still be affordable , for the economy with cheap loans to businesses and consumers will be enhanced, either because it is lame or because they want to keep under steam. Since the open outbreak of the crisis - started in the U.S. real estate market in June 2007 with the stumbling of two hedge funds the New York investment bank Bear Stearns because of bad speculation on real estate - interest rates come close to the zero line .

Rescue of failed banks and states

Second, and bankrupt banks and states (in the EU in breach of sacred oaths and statutory regulations) carved with new loans and saved it from bankruptcy. Greece was awarded the rescue as the first EU country, followed by Ireland, Portugal now. Next, we need to screen, the "shaky candidates' Belgium and Spain. If this continues, and because it is the primary payer, will be at the end of Germany to it. But who then provides the screen?

Fight on the "right side": to make debt

Debtors have so well in this system, lenders bad. Who on the "right side" wants to be, should consequently debt as a private person. In Germany it is even easier to him even more. This fact will now also be encouraged over-indebted individuals to their creditors. This begs the question: How the State, now the citizens? In any case, said the Federal Ministry of Justice (BMJ) and recently, the Federal Government is preparing the way for a change of mentality in the bankruptcy law. For many, bankruptcy is synonymous with personal failure and final failure. With the multi-level bankruptcy law reform, the environment would be changed so that bankruptcy offers a real chance to begin again. The core of this message: Over-indebted individuals and entrepreneurs should be adopted in full their debt twice as fast as before, and that after three years. So far, over-indebted, after six years off their debts off.

Remaining debts in the future twice as fast as previously

The BMJ points out that consumer bankruptcies rose by 2010 some 109 000 cases. This shows that the increasing number of private households further indebtedness. But smaller businesses often fell into financial difficulties. The process of the remaining debt relief from six to three years will, as Minister Sabine Leutheusser-Schnarrenberger (FDP) on 7 April said, to allow a faster restart. "The coalition agreement, we agreed to it." Thus, the economic potential in the interests of all would be reactivated as soon as possible.

What would be necessary and reasonable

But when you see how the "performers" being exploited for tax purposes among the individuals and small and medium-sized businesses as well as with more and more legal and bureaucratic impositions powerful destructive are coated, it would be far more sensible to the "economic potential in the interests of all" just help them to Stronger with less laws, less bureaucracy, lower taxes. Here sit the potential FDP voters. For them, losing the FDP and more sustainable than for the over-indebted probably aspires to win. But what are the FDP care nor their regular clientele. It suggests a long and growing.

For those who live on credit, like a gift from heaven

However difficult this also weighs against the new "residual debt": who knows he belongs after three years, his creditors can turn a nose, and to those contemporaries who inclined to live on credit and are accustomed, the project as a gift conceive of the sky. Conclusion: The new rules state seduction is the debt. Bad enough already that the state itself unrestrained deeper and deeper in debt - as enshrined in the Basic Law "debt brake", the probation in political practice still going on - but that it now encourages even its citizens, it is to do the same , is a strong piece.

Who are the victims once again

To the payment practice, it is already not looking good. The victims are again the creditors: suppliers, distributors, landlords, artisans ... And if they manage to flip that additional burden on its remaining customers, offering the end user. May not be based, which does not with his money. It annoys and discourages all other who make it and which are driven with such rules even more in the State of disaffection. The state sets the wrong incentives again.

The conditions for faster debt relief are lean

Since it is also of benefit little if the FDP minister says limiting: "The acceleration of the remaining debts it can not give a price. There must be targeted incentives to settle as many debts, so that the accelerated discharge of residual debt is in the interests of creditors. My suggestion is to allow a residual debt after three years only if in that time, the legal costs and a proportion of the debt be paid. "To think is to a rate of about one quarter. Fulfill these conditions, the debtor does not, it should as before only after six years to get any outstanding debts. But these are lean conditions, they plan to be debt-maker quickly.

Second stage of the insolvency law reform

The project is running in the BMJ as a second stage of the insolvency law reform. The first stage has brought the federal government already on the way: as a draft law to further facilitate the restructuring of companies. The third stage of reform is to deal with the subject in focus group insolvency.

An idea of ​​the "indebtedness Report of 2010

The idea of ​​the remaining debts to reduce from six to three years, goes well on the recommendation of the Hamburg Institute for Financial Services and the Foundation "Germany in the black" back. It is found in their "indebtedness Report dated October 2010. Then take the indebtedness in the household on the increase. Over-indebted households are on average 33 000 euros in the Meanies "and in debt to an average of over thirteen creditors. The bank claims made here, mostly of only half. Debts would have three million German households amounting to 110 billion euros together.

55 - to 65-year-old on average with 55 500 euros in debt

It states the report, the number of borrowers will increase. Trigger for the financial difficulties were in 40 percent of cases of unemployment or a failed self-employment. The highest credit debt you find in the age group of 55 - to 65-year olds who are in debt, on average, every 55 to 500 euros. Although more and more younger people have debt, but these are still small compared to the average, as they usually would not get such high loans. The largest debt trap it in Germany but poverty. The per-income indebted households is far below the average. Particularly hard, it states, especially single parents. That may be so or not. But whether this includes the population to the voters of the FDP and CDU / CSU or the proposed new rules to them, is quite doubtful.