Debt vs. state support
The law does not ask whether someone is debt-free, but whether they receive state support. Private debts (loans, instalment payments, old tax debts) do not directly affect naturalisation — as long as you do not apply for citizen's benefit (Bürgergeld) because of them.
Personal insolvency
Ongoing personal insolvency proceedings (Privatinsolvenz) are, as a rule, not a ground for rejection. What matters is whether you receive state assistance during the insolvency. If you are employed despite the insolvency and get by without social benefits, you can be naturalised.
Tax debts
Outstanding taxes are a special case: they can be treated as an indication of a lack of economic reliability. Active instalment payment agreements with the tax office (Finanzamt) can improve the situation. If tax proceedings are ongoing, legal advice from a lawyer is recommended.
Frequently asked questions
Does the authority look at my SCHUFA record?
No — the naturalisation authority has no access to SCHUFA. It assesses your financial situation based on your own statements and supporting documents (proof of salary, tax assessments).
I pay maintenance — does that count as debt?
Maintenance obligations are taken into account when calculating your disposable income. If you get by without social assistance despite your maintenance payments, you meet the requirement.
Past periods on citizen's benefit (Bürgergeld) — do they cause lasting harm?
Having received Bürgergeld in the past is less problematic than receiving it currently. What is decisive is your situation at the time you submit the application.