The Corona crisis is affecting many people. Financially, the pandemic can cause major problems when the mini-job is gone, less money is available due to short-time work, or even if unemployment threatens. In Karben and Bad Vilbel, the AWO debt counseling service advises citizens who can no longer pay their debts.
T he credit agency Creditreform warns in its “Debtors Atlas 2020” of an intensification of the debt crisis in private households. Seniors are particularly badly affected. Since 2013, the number of over-indebted consumers over the age of 70 has more than quadrupled to around 470,000.
In Karben and Bad Vilbel, the AWO debt counseling service advises citizens who can no longer pay their debts. But the social imbalance of many caused by the pandemic has not yet arrived there. “So far we have not had more clients, but fewer,” says advisor Jacques Indemans. This could be related to the fact that bailiffs were less active. Perhaps the switch to telephone advice instead of open consultation hours also plays a role. It is not known how the demand for advice will develop in the coming year. But one is assuming an increasing demand. “Unfortunately, most of those affected don’t come to us until it’s almost too late,” says Indemans.
Often people in debt would not open letters for weeks and miss deadlines instead of contacting the creditors. The consequences are serious: more debts are piling up due to penalty fees and collection costs. Suddenly the account is attached and the bailiff is at the door and sticks the cuckoo on the property. “We often see breakups and divorces lead to a debt crisis,” says Indemans. Because suddenly people have to bear the financial burdens alone that they would otherwise have paid for with two salaries. Often partners are amazed when they realize that they have to pay for financial obligations that their partner has entered into.
Unemployment and short-time work also affect people. Too many loans have to be paid off and rents are high. “In general, however, we cannot confirm that seniors are over-indebted and are increasingly using the advice center,” explains Indemans with a look at the statistics: Most of those seeking advice are in the middle of working life and are between 35 and 55 years old. Occasionally people over 65 years of age also come. Single people predominate in all age groups, the proportion of men is 60 percent.
Telephone only
Office hours
Due to the pandemic, AWO Debt Counseling is currently unable to offer open consultation hours, but the advisors can be reached by phone and are processing the cases. “That works well,” says Indemans, because if the necessary documents were sent to them, they would study them and advise them accordingly. You could negotiate with creditors, apply for a deferral, and try to reach an out-of-court settlement. “But we need time and several months of negotiating leeway for this,” warns Indemans. An out-of-court settlement is always preferable to bankruptcy. Because insolvency costs court fees, entails a Schufa entry and blocks access to loans, new leases or cheap providers of gas, electricity, telephone and internet for years.
“Most creditors respond when we offer a little more in the out-of-court settlement attempt than the attachable part of the current and future income. The advantage for them is that they get more than they would have expected in a bankruptcy,” explains Indemans The debtor must be absolutely honest and not “hide” income and assets. If you choose this route and make the agreed payments over a period of usually 36, 60 or 72 months, you have a debt-free future ahead of you. Because the out-of-court settlement has been fulfilled, the claims from it have expired.
AWO’s voluntary debt counseling service has existed for 16 years. Since 2017 it has had the status of a recognized debtor and insolvency counseling center according to § 305 InsO from the Darmstadt Regional Council and can bring about out-of-court settlements or confirm their failure so that the debtor can file for insolvency. The Wetteraukreis has used the advice center as a contact point for Karben and Bad Vilbel citizens. Two volunteer advisors are always present during the office hours (currently suspended due to the pandemic). A lawyer is available for legal questions. Preventive advice is provided on budget and accounting issues.
The team of voluntary consultants is also looking for reinforcement, preferably from people with professional experience in the commercial sector or as bankers. The AWO debt counseling in Friedberger Straße 84 in Bad Vilbel is on 01 76/51 00 79 04 (please speak on mailbox.) Or per email to
[email protected]. DOS
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