Everything you need to know about the insolvency administrator’s monthly disclosure obligation (income statement)

What is meant by “Einkommensnachweis”?

“Einkommensnachweis” means providing a regular, usually monthly, official proof of income to the insolvency administrator or trustee. This proof should show:

• your monthly net income

• any additional sources of income (if applicable), such as bonuses, side jobs or benefits

• any sudden changes in your salary or total income

Why is it important?

• It allows the insolvency administrator to calculate the attachable / transferable part of your income and transfer it to the insolvency estate in order to repay the creditors.

• It helps ensure that you comply with the conditions of the “good conduct period” (Wohlverhaltensperiode).

• It demonstrates your good faith and transparency towards the court and your creditors.

What must be submitted every month?

Recent payslip (Gehaltsabrechnung)

• If you are employed, you must send a copy of your current monthly payslip to the insolvency administrator as soon as you receive it.

Proof of income for the self-employed

• If you are self-employed, you must submit a simple monthly report of your income and expenses, ideally with the main invoices attached.

Benefit notices

• For example, child benefit (Kindergeld) or Jobcenter payments.

Any additional income

• For instance, rental income, regular transfers from family members or scholarships.

What happens if your income changes?

• You must report any increase or decrease in income immediately.

• If you receive a one-off large payment (for example a bonus, severance payment or inheritance), you must inform the insolvency administrator right away, because this may affect the amount that can be seized and paid into the insolvency estate.

What are the consequences if you fail to disclose your income?

• Loss of trust: The insolvency administrator may assume that you are trying to hide income, which can lead to legal action.

• Revocation of debt discharge: Your final discharge from remaining debts (Restschuldbefreiung) can be refused or cancelled.

• Restart of individual enforcement measures: Creditors may again be allowed to enforce their claims directly against you.

How is the income disclosure submitted?

• Usually by post or by e-mail to the insolvency administrator / trustee.

• Some administrators provide standard monthly forms to make it easier to submit the information.

• You should keep copies of all documents you send as legal proof.

Practical tips

• Set a monthly reminder to prepare and send your documents always at the same time.

• Collect payslips and other income documents continuously to avoid delays or omissions.

• If in doubt, contact a debt counselling service (Schuldnerberatung) or a specialised lawyer to avoid mistakes.

• Never underreport or hide income, no matter how small it is – full honesty is essential for a successful insolvency procedure.

Conclusion

The monthly duty to provide an Einkommensnachweis is a cornerstone of personal insolvency proceedings in Germany. By submitting complete and regular proof of all your income, you maintain your legal protection and safeguard your right to a final discharge from your debts. Transparency and reliability are not optional here – they are legal obligations and the key to a fresh financial start.

The editorial team of the website endeavours to provide accurate information based on thorough research and multiple sources. However, errors may still occur or information may be incomplete. Therefore, please regard this article as a first point of reference and always consult the competent authorities or professional advisers for binding and up-to-date information.