Official debt management plans are pronounced by a judge, if there is no other possibility to repay the debt. The regulation was introduced in December 1998 and is part of the Bankruptcy Act.
Private persons who can no longer repay their debts can apply for a debt management plan. Under supervision of a receiver, the debtor repays his debt to his creditors in accordance with his income. Creditors are obliged to cooperate with the plan. After a period of (usually) three years, the debtor is granted a clean slate.
This legal scheme is intended to prevent private persons with or without a one-man business being pursued by debt.