Against the background of ongoing legal proceedings, Schufa is now reducing the storage period for entries on completed private bankruptcies from three years to six months. A spokeswoman said on Tuesday in Karlsruhe that the aim was to create clarity and security for consumers.

In the morning, the Federal Court of Justice (BGH) announced that it was suspending proceedings on the issue for the time being in order to await a decision by the European Court of Justice (ECJ) in two similar cases.

Consumer bankruptcy allows private individuals to free themselves from their debts, even if they cannot repay everything. At the end there is the so-called residual debt exemption. Information about this will be published on an official internet portal for six months.

The Schufa and other credit bureaus collect these notices and store them for three years. This used to be allowed, but since May 2018 a new data protection law has been in force across the EU.

In mid-March, the responsible ECJ Advocate General was very critical of the long storage. This has significant negative consequences for those affected. The ECJ judges are not bound by this, but often follow the Advocate General’s assessment.

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