Hardship case

Hardship rules (Härtefall) apply in situations of extreme financial need – they protect the subsistence minimum (Germany).

1. Tax deferral (§222 AO):

• Apply to the tax office BEFORE the due date
• Requirement: payment would cause considerable hardship
• Deferral interest: 0.5%/month (6%/year) – but better than enforcement

2. Rent arrears:

• Bürgergeld recipients: the job centre covers rent arrears as a loan if homelessness threatens (§22 para. 8 SGB II) – the job centre MUST!
• Social assistance: the social welfare office steps in if homelessness threatens (§36 SGB XII)
• Also applies to people who DON'T receive Bürgergeld

3. Preventing an electricity cut-off:

• Hardship funds in many federal states (Berlin, Bavaria, North Rhine-Westphalia and others): interest-free loans
• The social welfare office can cover energy debts as a loan
• No cut-off if health is at risk (sick people, pregnant women, small children)

4. Legal aid (Prozesskostenhilfe, PKH):

• The state covers court and lawyer's fees for people on low incomes
• Around 20% of all civil cases are conducted with legal aid

Where to turn:

• Debt counselling: free at Caritas, Diakonie, AWO, consumer advice centres
• Social welfare office: if homelessness threatens
• Job centre: if you receive Bürgergeld