Debt Assistance and Social Assistance: Impact on Asset Limit

Debt assistance (WSNP or municipal) positively affects the social assistance asset limit. Under WSNP (Debt Rescheduling Act), a protected asset amount of €5,670 per person (2024) applies, above the social assistance limit. Municipalities lower the test in case of debts: no repayment obligation for social assistance. Article 41 WWB allows debts to be deducted from assets. Amicable trajectory: benefit continues during repayment. Exception: WSNP does not stop social assistance, but calculates with 'reasonable provision level'. Report debts upon application: prevents sanctions. Practice: garnishment-free foot protects €1,500 monthly. After WSNP: clean slate, full social assistance. Trajectory costs free via municipality. Tips: start with budget management course. Legal basis: Bankruptcy Act and Participation Act. Success rate 40-60%: clean slate possible. Combine with social assistance for minimum standard of living. Apply for administrator in case of problematic debts.