Affidavit
What is an affidavit?
An affidavit is an important legal tool in debt collection for recovering outstanding claims. It is an official declaration where a debtor confirms that their statements regarding assets and income are true. This declaration is made in writing and confirmed by signature.
Typically, an affidavit is used as a last resort when other measures to recover claims have failed. It serves as a legal pressure tool and a source of information for creditors to assess the debtor’s actual ability to pay.
Example: If the debt collection agency has repeatedly tried to recover a claim unsuccessfully, it can demand an affidavit from the debtor to prove that there are indeed no attachable assets.
For debt collection, this procedure is particularly important because it provides clarity about the debtor’s financial situation. It helps determine whether further enforcement actions are justified or considered hopeless. Additionally, the information is recorded in a debtor register, which can have further consequences for the debtor’s creditworthiness.
Note: An affidavit in the context of debt collection has significant legal and financial consequences for the debtor and should therefore be taken very seriously. False statements can have criminal consequences.
Who must provide an affidavit?
Primarily, individuals who cannot pay their debts are required to provide this declaration. This includes:
Private individuals who can no longer pay their bills or loans.
Companies that are insolvent and can no longer pay their creditors.
Self-employed individuals whose business no longer generates sufficient income.
It does not matter whether the amounts are small or large. The decisive factor is that the debtor can no longer pay and must explain this.
Such a disclosure of assets is often the last step after a creditor has repeatedly tried to collect their money and failed. If someone owns nothing or has only very little income, this must be confirmed through an affidavit.
Under what circumstances is an affidavit provided?
An affidavit is required in various situations. Here are the most common occasions:
After unsuccessful attempts at attachment
A bailiff attempts to seize money or valuables.
However, nothing is found in the person’s home or bank account.
By court order
This can occur as part of a judicial dunning process.
Especially if a payment demand has not been complied with.
In the case of official insolvency
When a person must officially declare they are bankrupt.
The person can no longer meet their financial obligations.
Upon direct demand from a creditor
The creditor directly requests a disclosure.
This serves to clarify the debtor’s financial situation.
In all these cases, the debtor must fully disclose their financial situation. This measure ensures that no one is deliberately hiding assets or ignoring debts.
Where is an affidavit provided?
The declaration is provided at specific locations:
With a bailiff
This is the most common case.
The debtor is invited to an appointment at the bailiff’s office.
At the competent district court
Particularly when a court has ordered the affidavit.
Or when certain proceedings are conducted there.
Before a notary
In rare cases where additional notarization is required.
The exact location depends on who is requesting the affidavit and what type of debt is involved. For standard monetary debts, a bailiff almost always handles the disclosure. However, in special cases, this may also occur before a court or a notary.
How is an affidavit provided?
The process for providing an affidavit involves several steps:
Step 1: The demand
The debtor receives a written demand.
It states that the financial situation must be disclosed.
Step 2: The summons
The person is invited to a specific appointment.
This appointment is usually held with a bailiff.
Step 3: Filling out the form
A form must be filled out during the appointment.
The following details must be provided:
Possessions
Income level
Existing debts
Regular expenses (such as rent)
Step 4: The signature
By signing, the person confirms that all information is correct and complete.
Step 5: Entry in the register
The information is entered into a debtor register.
This register records all debtors who have no attachable assets.
What is the purpose of an affidavit?
Disclosing financial circumstances serves the following purposes:
Determining solvency: Clarifying whether a person can pay or not.
Providing information for creditors: Creditors can assess whether further collection attempts are worthwhile or if the claim should be written off.
Decision-making for courts: Courts need this information to determine how to proceed in the case.
Documenting the financial situation: It is officially documented whether there is nothing of value left. This is particularly important after multiple unsuccessful attempts at attachment.
What information must be provided in an affidavit?
A complete affidavit requires numerous details. The following information must be disclosed:
Personal details
Name
Current address
Date of birth
All sources of income
Salary or wages
Pension
Other regular payments
Unemployment benefits or social assistance
Total assets
All bank accounts
Real estate
Valuables (jewelry, vehicles, etc.)
All existing debts
Outstanding invoices
Ongoing loans
Other payment obligations
Private debts to friends or family
Regular expenses
Rent
Maintenance payments
Insurance contributions
Electricity bills
Mobile phone contracts
Other fixed monthly costs
Important: All information must be accurate and complete. Knowingly providing false information or omitting important details can lead to legal consequences. The affidavit will then be considered invalid and may result in further legal action.