I cannot pay my debts any more

How does the over-indebtedness procedure work?

What the law says

It is for people living in Luxembourg who clearly cannot cope with all their non-business debts; a trader can only use it six months after stopping trading, or once their bankruptcy is closed (Art. 2).
Three stages: an agreed settlement before the Mediation Commission, then a court-ordered recovery plan, and finally a personal recovery procedure before the justice of the peace (Art. 1).
You apply in writing, with documents, to the Commission; the information and advice service examines it, then the Commission decides on admission (Art. 4).
The plan can include postponing or rescheduling payments, partial or total cancellation of debts, lower interest rates and social or budgeting support (Art. 7).

From the moment you apply, you must declare everything, work if you can, not add to your debts and not favour one creditor (Art. 3).
If no plan is accepted within six months, you have two months to go to the justice of the peace; otherwise you must wait two years to start again (Art. 8 and 9).
Debts that were cancelled can be reviewed if your situation improves within seven years (Art. 22).

By practice area, language and town, in a neutral order.