Skimming procedure
What is a skimming procedure?
A debtor who is a natural person may, during the course of personal insolvency proceedings, apply for the commencement of a skimming procedure at the latest when submitting a payment plan application, in order to obtain a discharge of residual debt. They must assign the attachable portion of their income to a trustee for a period of usually seven years, with a view to ensuring the best possible pro rata satisfaction of the insolvency creditors. Skimming proceedings are initiated if the payment plan has been rejected.
To make it easier to clear debts, the duration of the debt repayment procedure has now been extended to five years with effect from 1 November 2017. Discharge of the remaining debt is provided for at the end of this period, regardless of whether a minimum repayment rate has been achieved.
Learn more about our insolvency and restructuring division. Please feel free to contact us for further information.