Debts to freelancers and the self-employed

The economic and financial problems of freelancers and the self-employed are often not in their operational business.

During our many years of experience, we have found that our clients’ practices and companies often run well and generate enough profits to make a good living under normal circumstances.

Rather, the triggers for the debt of freelancers and the self-employed are very often to be found in the private sector.

Reasons for indebtedness

Reasons for indebtedness

Debt often arises from divorce, illnesses of the client or in his family or through failed private investments.

If the debts do come from the operational area, the cause could often be identified as excessive purchase price payments for the takeover of a practice or a business or excessive pension or compensation payments to senior partners.

In addition, additional demands from the tax office, which can then no longer be served from current business, lead to an economic imbalance.

The aim of our advice

The aim of our advice

The aim of our advice is to maintain existing practice or business and either avoid a regular insolvency procedure from the outset or enable the indebted freelancer and self-employed person to manage his company independently in the insolvency procedure.

Our clients are often afraid that with the opening of insolvency proceedings, self-employment will also have to be abandoned.

This is not correct.

In the insolvency proceedings, the businesses of freelancers and the self-employed are continued much more often than closed and wound up.

However, for a successful continuation of the independent activity it is a prerequisite that the objects necessary for the continuation of the business remain in the company and are not covered by the bankruptcy fittings. It must therefore be ensured that the inventory is withdrawn from the bankruptcy estate and can be used to continue the business.

Admission

Admission

For freelancers who work in a chamber-bound profession or self-employed in the financial services sector, the opening of insolvency proceedings regularly withdraws the license required to practice the profession. Without the required approval, further professional existence is at stake. To prevent this, alternatives must be found outside of bankruptcy proceedings.

Extrajudicial hearing

Extrajudicial hearing

Since creditors are often not interested in conducting insolvency proceedings due to the very low insolvency rate to be expected, out-of-court settlement negotiations with creditors should be conducted as a first step.

Often creditors are also willing to make concessions and engage in moderate installments, payment terms and a haircut that can be used to ensure the continued existence of the company.

Bankruptcy plan proceedings

Bankruptcy plan proceedings

The relatively new instrument of the insolvency plan procedure offers another possibility to end the financial crisis and to get out of debt without bankruptcy proceedings.

The number of such insolvency plan proceedings has already increased by 50% since the reorganization of the bankruptcy code (ESUG) came into force. An insolvency plan procedure enables the self-employed or self-employed debtor to self-manage his entrepreneur without the influence of an insolvency administrator.

In contrast to normal insolvency proceedings, the decisions can still be made by the debtor himself. An insolvency administrator is not provided for in the insolvency plan procedure. The process is monitored by an administrator. However, the debtor can determine this himself.

The debtor is thus self-determined in the insolvency plan procedure from the application until its termination. Enforcement actions are also not possible in the insolvency plan procedure. This also eliminates the risk of a revocation of the professional license for the freelance debtor.

Based on our many years of experience, we can find the right solution to your financial crisis. It is important that you set the course in good time to prevent escalation and to be able to take the optimal route for you. Whether you need an extrajudicial debt settlement, the insolvency plan procedure or your representation in the insolvency procedure, you need professional help!

Credit simulation: why and how?

Professional or private? To finance your projects, we offer you all the information on online mortgage simulators, the instructions to follow, for an increasingly advantageous rate.

Simulate to find the right credit

Simulate to find the right credit

It is often advisable for a future borrower to go through a simulator before committing to take out a loan. The argument put forward is that the loan simulation allows better study of the market in order to be able to negotiate its interest rate with the lender.

Interest from the credit simulation

Interest from the credit simulation

The credit simulation makes it possible to know the borrowing capacity of a borrower, that is to say the amount that the borrower can allocate to repay a new loan. This operation gives an estimate of the amount that can be obtained, and an idea of ​​the terms of the loan (amount of monthly payments, repayment period, total cost of credit). Then, the simulation allows competition to play by comparing the offers of different organizations. This makes it easier to negotiate and get the loan at the best rate.

Elements to be determined before simulating

Elements to be determined before simulating

Before going through a credit simulator, it is necessary to determine some elements beforehand. Indeed, the simulation tool will be based on these to analyze the situation of the borrower and provide the results. Thus, the borrower must take stock of his project (purchase of equipment, works, leisure, real estate purchase, etc.) on the one hand, and determine the amount necessary for financing on the other hand. His income and any current monthly payments are also to be defined.

Loan simulation: operation

Loan simulation: operation

Using the mortgage simulation tool is very simple. First, the borrower selects the type of project and indicates the amount he needs to finance this project. He will then have to fill in a few fields concerning his personal situation, his income or his current monthly payments. The mortgage simulator will use all of these parameters to calculate and provide the results. The borrower will then have a clear visibility of his future loan. Note that the rate communicated during the simulation must relate to the overall effective annual rate APR which includes all the costs linked to the credit.