Do you have debts and are you unable to reach a solution with creditors? Then the judge is asked for a solution. That is the legal process via the Natural Persons Debt Reorganization Act.
How do you qualify?
The declaration and petition must be submitted by the municipality to the court. You can not directly send a petition to the court. Your debt counselor from the amicable process can advise you on this. He has an example of the petition and knows which documents must be sent.
After a few weeks you will receive a call to appear at the court. During this session, the judge will ask you for additional information. He usually also explains what obligations you have if you are admitted to the WSNP.
The court decides whether you are eligible. Here it is examined whether the amicable route is indeed not possible. Furthermore, the court tries to assess whether you will stick to the rules of the debt restructuring.
The court can require creditors to cooperate. After a period of 36 to a maximum of 60 months, your remaining debts will be waived.
How does it work?
If you are admitted to the WSNP, the judge appoints an administrator who executes the statutory regulation. The administrator will ensure that you comply with the rules of the WSNP. He examines your situation and informs creditors and the supervisory judge.
You must inform the administrator about anything that may be important for your debt restructuring. The administrator will receive all your mail in the first few months. This way he can check whether the debt restructuring is going well.
During the scheme you usually pay your fixed costs and normal bills yourself. The administrator calculates an amount for you that you have to make on a monthly basis. This is called the VTLB, the amount to be released.
All income above this amount and any assets will go to the estate account. This is a special account under the management of the administrator. The creditors are paid and a contribution for the administrator.