Debt during studies often builds up gradually: an overdrawn account, an unpaid phone bill or a loan that does not fit the budget. Acting early matters, because reminders and deadlines keep running. This guide explains which services help, how an instalment plan works, which rules protect your income and account from seizure, and when a consumer insolvency procedure may be an option. For prevention, see our guide to avoiding student debt.
Short answer: If you have debts, first seek advice from a debt counselling service. If creditors will not agree to an instalment plan, consumer insolvency may be an option. After a three-year good-conduct period (Wohlverhaltensphase), residual debt discharge follows (section 287 InsO). An objection to a payment order must be lodged within two weeks (section 694 ZPO). Last updated: October 2026.
The most important points at a glance
- Debt counselling gives you an overview of your situation and checks whether an agreement with creditors is possible.
- A creditor does not have to accept an instalment plan. A written agreement protects both sides.
- Your bank account can be protected through a P-Konto (protected account). The protected amounts were raised on 1 July 2026.
- Consumer insolvency requires an unsuccessful attempt at an out-of-court settlement. Afterwards, residual debt discharge follows after three years.
- BAföG loans are repaid only after your studies. Repayment starts later.
Which advice helps with debts during studies?
The first step is advice that looks at your whole situation, not just a single claim. Many cities, districts and welfare organisations run debt counselling services. Student services (Studierendenwerke) at many university towns also offer social counselling for financial emergencies. You can ask your university or check the website of the Studierendenwerke for services near you.
| Service | What it helps with | Note |
|---|---|---|
| Debt counselling service (city or welfare organisation) | Overview, negotiation with creditors, preparation for insolvency | ask about appointments in advance |
| Social counselling of the student services | Financial emergencies during studies, referrals | offer varies by university town |
| Hardship fund of the student services | help in acute emergencies | evidence and application needed |
| BAföG office | questions on loans, deferral and repayment | apply before the repayment is due |
A conversation with a counselling service does not replace legal advice in a specific case. It does, however, bring order to your claims and shows which steps make sense. Especially with a payment order or a warning of enforcement, do not wait until the last deadline.
How does an instalment plan with creditors work?
An instalment plan means that you repay a debt in fixed monthly amounts. The creditor is not obliged to agree, but it often will if you present a realistic plan. Write the agreement down, with the amount of each instalment, the due date, the remaining balance and a rule for late payment.
Assumption: you owe a provider 3,000 euros and pay without interest. The term depends only on the amount of each instalment, as the table shows.
| Monthly instalment | Term (without interest) | Total sum |
|---|---|---|
| 100 euros | 30 months | 3,000 euros |
| 150 euros | 20 months | 3,000 euros |
| 200 euros | 15 months | 3,000 euros |
In practice, interest, costs and reminder fees are added. Therefore, use the total from the contract and not only the invoice as your basis. If you can no longer keep up with an instalment, write to the creditor early with a new proposal instead of simply stopping payments.
What protects you from seizure?
A creditor holding an enforceable title may seize your wages and your bank account. Not everything can be taken. Earnings can be seized only above the limits set in section 850c ZPO. These limits are set in a notice published by the Federal Ministry of Justice and are generally adjusted every two years, on 1 July. The current version applies from 1 July 2026. We do not quote the exact amounts here, because they change. Check the current notice.
On a current account, the seizure protection works through the protected account (P-Konto, section 850k ZPO). It must be set up with your bank on request and automatically protects a basic amount each month. If you receive social benefits or other protected income, tell the bank so that the protected amounts are applied correctly.
When is consumer insolvency worthwhile?
Consumer insolvency is a court procedure that gives over-indebted private persons a fresh start. Before filing, an out-of-court attempt at a settlement through a recognised body, such as a debt counselling service, is required (section 305 subsection 1 no. 1 InsO). If it fails, an application can be filed with the insolvency court. Procedural costs arise, and they can be deferred in individual cases (section 4a InsO).
After the opening of proceedings, the good-conduct period follows, during which your seizable income is assigned to a trustee. It lasts three years (section 287 subsection 2 InsO). The court then grants residual debt discharge. Not every claim is discharged. Certain fines and claims from intentional unlawful acts are excluded, for example (section 302 InsO). Insolvency is therefore an option to check carefully, not a quick way out.
How do you deal with BAföG debt?
Half of BAföG support is an interest-free government loan. Repayment starts five years after the end of the maximum funding period. The standard instalment is 130 euros per month, and for partial exemption a minimum instalment of 42 euros applies. Repayment can take up to 20 years. The exact process and the options for exemption are explained in our guide to BAföG repayment.
Assumption: your loan is repaid at the standard instalment of 130 euros per month. That makes 1,560 euros per year.
Frequently asked questions
What happens if I ignore a payment order?
The creditor can then apply for an enforcement order. You can object to the payment order within two weeks of service (section 694 ZPO). This deadline is strict. If you do not respond in time, you lose the chance to have the claim examined in the proceedings.
Do debts become statute-barred after a certain time?
The general limitation period is three years (section 195 BGB). It starts at the end of the year in which the claim arose and you became aware of it (section 199 BGB). After it expires, you may refuse payment. The claim does not disappear automatically, however, unless you invoke the limitation.
Does debt counselling cost a lot?
Advice from recognised bodies is generally not charged at high fees. The exact conditions and waiting times are available locally. Be careful with private providers who demand payment in advance or promise results.
Can the hardship fund help me?
Many student services run a hardship or emergency fund for acute need. What is paid and which evidence is needed is decided by each university or student services organisation. The process is explained in our guide to the hardship funds of the student services.
What to do now
- Create an overview of all debts with creditor, amount, interest and due date.
- Book an appointment with a debt counselling service or the social counselling of your student services.
- Send creditors a realistic instalment plan and ask for written confirmation.
- Check the two-week objection deadline immediately for every payment order.
- Clarify seizure protection and the protected account with your bank before a seizure occurs.
Related guides
- Avoid student debt: typical traps and ways out
- BAföG repayment: start, instalments, exemption and partial write-off
- Organising your finances as a student (in German)
- Hardship funds of the student services
Sources: Section 287 InsO, residual debt discharge (status 2026), Section 850c ZPO, seizure protection for earnings (status 2026), Section 694 ZPO, objection to payment order (status 2026), Section 195 BGB, limitation period (status 2026), bafög.de, leaflet on BAföG repayment (status 2026).
Last updated: October 2026. This guide is general information, not individual advice.
