Will state pensions make cities bankrupt?

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Financial problems can be self-inflicted or caused by external factors. Depending on the personal life situation, various institutions help to secure a livelihood. In order to receive the benefits, several conditions must be met and corresponding evidence must be provided.

Over-indebtedness
Employer is insolvent
Financial support from the state
Application for basic security in old age
Further financial help with basic security in old age

Over-indebtedness

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If a private person can no longer meet their financial obligations with the existing income assets, they are considered over-indebted. The overindebted person first turns to a recognized debt counseling center. There a debt settlement plan is drawn up together with her with the aim of reaching an out-of-court settlement with the creditors. To create this plan, a list of income and expenses is required, as well as a list of debts, wage statements, attachment notices and reminders.

If the out-of-court settlement is successful, the over-indebtedness can be eliminated in this way. In the event that the out-of-court settlement fails, the insolvency court will file for consumer insolvency proceedings and the discharge of residual debt within six months. In addition, the deferral of the procedural costs can be requested.

Before the actual consumer insolvency proceedings are opened, a judicial attempt to reach an agreement takes place (compulsory settlement). If the compulsory settlement is successful, there is no need for consumer insolvency proceedings. If the compulsory settlement fails, consumer insolvency proceedings are opened. A trustee is appointed by the bankruptcy court and assigned to the indebted person during the.

In addition to the consumer insolvency procedure, there is the insolvency plan procedure for consumers. If something changes in the financial circumstances during the conduct of business phase or if the creditors signal that they are now ready to negotiate, a new attempt at an agreement can be made and the bankruptcy terminated prematurely within one year.

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Employer is insolvent

If the employer becomes insolvent, the employee reports to the Federal Employment Agency as looking for work and applies for insolvency money and an advance on insolvency money. To apply for insolvency money, the following documents must be submitted: Insolvency payment certificate from the employer insolvency administrator, a copy of the employment contract, the letter of termination received, the last three earnings slips and the file number of the insolvency proceedings. Claims for payment of wages are to be reported in writing to the insolvency administrator of the employer according to the insolvency regulations. The bankruptcy administration is appointed by the bankruptcy court.

There is also the possibility of filing an action against an unauthorized dismissal due to insolvency before the opening of bankruptcy against an operational dismissal in the insolvency proceedings at the labor court.

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Financial support from the state

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In addition to private over-indebtedness and the bankruptcy of the employer, there can be other reasons why people have financial problems and are at risk of poverty. In these cases, the state grants monetary benefits depending on the personal life situation. Different authority contacts and the submission of various proofs are required.

  • -Office
    Students, trainees and schoolchildren can apply to the Office for benefits in accordance with the Federal Training Assistance Act. The following evidence must be provided for the initial application: certificate of enrollment, identity card, rental agreement, registration certificate, proof of health insurance membership, tax notices from parents from the penultimate calendar year, income receipts, proof of assets, evidence of own debts, birth certificate of own custodial children. The notification is initially valid for 12 months, after which a shortened follow-up application must be made.

  • Employment agency / job center
    In addition to grants for vocational training, unemployment benefits I and II, benefits for education and participation for children, adolescents and young adults and social benefits can be applied for at the employment agency at the job center. Those in need of benefit who are not able to work receive social benefits if at least one person in need of work and need lives in their community of needs. The granting of vocational training allowance is tied to certain conditions and requires the submission of the training contract, certificates and information about the parents' income, while in the case of unemployment the letter of termination and other documents must be submitted.

  • Family fund
    Both child benefit and child allowance are requested from the family benefits office. The child allowance is a supplement to child benefit that is paid for unmarried children under the age of 25 in families with insufficient family income. The birth certificate, the tax ID of the child and information about income and assets are considered proof. The application is submitted to the family benefits office of the Federal Employment Agency. This can also be done online. The approval period for the child allowance is 6 months, after which a new application must be made.

  • Office for Social Affairs
    You can apply for social assistance, basic security in old age and reduced earning capacity as well as asylum seeker benefits at the Social Office. In addition, benefits for education and participation can be applied for for children, adolescents and young adults. Information about income and assets must be provided as evidence. In addition, the rental agreement and other documents must be attached. Asylum seekers must also provide information about their previous whereabouts and show a passport.

  • German pension insurance
    An application for a disability pension can be submitted to the Deutsche Rentenversicherung. Proof of unemployment, medical reports, training periods, child-rearing periods and other documents are required.

  • Parental Allowance Office
    Basic parental allowance, parental allowance plus and the partnership bonus can be requested from the parental allowance office. The basic parental allowance is paid for a minimum of two and a maximum of 12 months (14 months if both parents use parental leave). If parents take parental leave for more than 12-14 months and want to work part-time, the ElterngeldPlus is worthwhile. This runs twice as long as the basic parental allowance, but the payout amount is only half as high. A further four months of ElterngeldPlus can be applied for as a partnership bonus, provided that both parents do not exceed a certain working week. The child's birth certificate, proof of income and other documents are required as proof.

  • Housing benefit office
    If need is proven, you can apply for housing benefit at the responsible housing benefit authority. As a rule, the following evidence must be attached to the application: rental agreement and rental certificate from the landlord, household certificate, a declaration of income and income statement from the employer. Depending on the individual situation, additional documents may be required. Housing benefit is usually granted for 12 months, after which a fully completed repeat application must be submitted.

  • Health insurance
    If an employee is ill for more than 6 weeks, the continued payment of wages by the employer ends in the event of illness. As a result, the statutory health insurance pays sick pay, provided that the illness is fully documented by a doctor's certificate. Sick pay does not have to be applied for separately; the respective health insurance company will automatically contact the insured person after the continued payment of wages by the employer has expired. Sickness benefit is paid for a maximum of 78 weeks for the same illness within three years. The amount of the sick pay depends on the respective income and is 70% of the regular gross earnings, but may not exceed 90% of the net earnings. In principle, sick employees and trainees are eligible, but recipients of unemployment benefit I are also entitled to sickness benefit in the event of illness.

  • Care fund
    If there is a need for care, care allowance can be requested from the care fund.

  • Pension office
    Severely disabled people have the opportunity to apply for a disabled person's ID at the pension office. In addition to the application, medical reports, findings and reports as well as official reports and other documents must be submitted to the pension office. Additional discounts can be requested with the severely handicapped ID.

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Application for basic security in old age

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If an elderly person is at risk of poverty, they can submit an application for basic security in old age to the Office for Social Affairs. The Office for Social Affairs first examines the applicants' neediness. Information about income and assets as well as insurance contributions to be paid are considered as evidence. In addition to current account statements, the submission of the rental agreement and the utility bill as well as evidence of heating and electricity costs is required. In the event of a need for care, proof of this must also be provided (notification from the care insurance fund). A decision is then made on the application and the amount of basic security in old age. If the application is approved, the applicant will receive a notification. As a rule, the benefit is granted for 12 months, after which a shortened follow-up application must be made to extend it.

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Further financial help with basic security in old age

Various financial benefits are associated with the decision on basic security in old age:

  • Exemption from the broadcasting fee obligation
    Upon submission of the notification of basic security in old age, an application can be made to the ARD ZDF Deutschlandradio Contribution Service (formerly: GEZ) for exemption from the broadcasting license fee.

  • ID cards for people with basic security
    Some city councils issue cards to people with basic security, which entitle them to discounts in various municipal facilities, in swimming pools. The notification of basic security in old age is also valid here as proof.

  • Dog tax reduction
    When submitting the notification of basic security in old age, a dog tax reduction can be applied for from the local government. The tax office is responsible for this in the city states of Berlin, Bremen and Hamburg.

  • Food for humans and animals
    At the Tafel and Tiertafel, food for people and animals can be purchased at reduced prices on presentation of the notification of basic security in old age.

  • Cultural events and other perks
    Many clubs, municipal institutions and Deutsche Bahn grant discounts on presentation of the notification of basic security in old age.

  • phone
    Telekom offers a social tariff that can be applied for. The notification of basic security in old age is also valid as proof of need.

Further information on government financial support can be found here:

Education
unemployment
divorce
birth
childcare
Long-term illness
Severe disability
Dependency

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