If you have debts, it is important to find a solution. In the amicable process, the debt counselor tries to make arrangements with your creditors. Do you want to know if you are eligible?
You are eligible for debt assistance from the municipality if you meet the following conditions:
- You have debts that you do not know
- You are over 18 years of age
- You are registered in your municipality
- You have an income
How does it work?
A debt counselor guides you during this process. He gives you advice and tips to get started yourself. The debt counselor maps out your financial situation. He looks at the level of your debts, your monthly income, and your expenses.
If you are entitled to income support measures such as health care allowance, he will also take this into account. He also gives tips on how to save or how to provide more income. The debt counselor then checks whether a debt settlement is already possible. Is not that the case? Then first stabilization period takes place.
Are you unable to reach an amicable agreement? Then there is the possibility to appeal to the Natural Persons Debt Reorganization Act, the WSNP. This is the legal process .
Tip: Check whether your debt counselor is affiliated with a trade association. This reduces the chance of malicious debt counselors. No money may be asked for debt counseling!
How much can you pay off?
The debt counselor calculates your repayment capacity. That is the amount that you can pay monthly to repay the debts. He first calculates the ‘Free to Amount’ (VTLB). That is the minimum amount you need to live on. Your net income minus the ‘Free to Amount’ gives the repayment capacity. On the basis of the repayment capacity, the debt counselor tries to make a payment arrangement with your creditors.
The repayment period is usually 36 months. Are you unable to pay off all debts at the end? Then a part can be canceled. This way you can start debt-free after the end of the repayment period.