Collection and Enforcement Measures for Non-Payment of Rent Allowance

If you do not repay your rent allowance, the SVB will engage collection agencies and bailiffs. First, you will receive reminders with a payment period of 8 weeks. Thereafter, coercive collection follows: attachment on salary, benefit or bank account. Interest and costs accrue, up to 5% per year. You can arrange a payment plan to prevent this – monthly repayment without interest if you cooperate. If you refuse? Then possibly conservatory attachment on your home or car. In extreme cases, it leads to a bankruptcy petition. Protection: apply for deferment in case of objection or evidence gathering. The Act on Characteristics of an Effectively and Transparently Functioning Government regulates your right to be heard and right of counter-hearing. Tips: always respond to letters, seek debt assistance via municipalities. For those on minimum income, special assistance applies. Prevent escalation by contacting in time. Millions of euros are collected annually, but many settle it voluntarily. Know your rights to avoid excesses.