Debt and insolvency counselling

The debt counselling service is offered to Cologne’s citizens who find themselves in a difficult psycho-social situation and state of emergency that threatens their existence. If the focus is initially on securing their livelihood, the next step is to settle existing debts. The aim is to create conditions for those affected to allow them an independent and responsible life in terms of how they manage their household budget, taking available resources into account.

As well as measures to secure their livelihood and to settle debts, factors such as trust, time and individual factors are particularly important. During the advisory process, the advisor also acts as helper, mediator or “advocate”, if required. The service is created to be complete and needs-based and tailored. The consultancy includes clarification of objective circumstances, i.e. appraisal of legal and financial situation and a reasonable assessment of individual aspects.

Following the initial contact, the advisory process is broken down into two phases, a clearing phase and a constructive advisory phase. The personal and financial situation of the person seeking counselling is recorded in the clearing phase; initial steps are introduced to secure the livelihood. Concepts are devised and implemented with the parties concerned during the advisory phase, which aim for a long-term rehabilitation and stabilisation of the personal situation.