What is legal aid in civil proceedings?

Legal aid in civil proceedings is financial support provided by the state. It makes it possible to pursue a court case even if one’s own income or assets are not sufficient to cover the costs.

The idea behind it: everyone should have the opportunity to assert their rights in court or to defend themselves, regardless of their financial means.

In practice, this means: anyone wishing to file a claim or defend against one can receive support. If court and attorney fees cannot be paid, financial assistance during the proceedings can be requested.

The court then examines the personal and financial circumstances and decides whether support will be granted.

Difference from legal advice aid

Legal aid in civil proceedings is often confused with legal advice aid. However, these are two separate forms of assistance. Legal advice aid only covers out-of-court matters, such as legal advice from an attorney or the drafting of a letter.

Legal aid in civil proceedings, on the other hand, applies only once a case is already before the court. It therefore relates to the court proceedings and not to preparatory legal advice.

Who can apply for legal aid in civil proceedings?

In principle, any individual or company may apply for assistance with court costs if their own financial resources are insufficient.

What matters is that the court reviews the application and decides whether aid will be granted. Both the financial situation and the chances of success of the case play an important role in this decision.

Requirements for private individuals

Private individuals may receive aid if their income and assets are insufficient to cover the costs incurred. The court specifies which amounts may be deducted for living expenses, rent, or other necessary expenditures. Only when no funds remain after these deductions does legal aid in civil proceedings become possible.

In addition, the court examines whether the claim or defence has a reasonable chance of success. Proceedings that are deemed hopeless from the outset are not supported.

Requirements for companies

Companies can also apply for legal aid in civil proceedings under certain circumstances. However, this is much less common, as companies usually have financial resources.

An application only has a chance of success if the company can prove that it is unable to cover the litigation costs. The court conducts a strict review of the company’s financial statements, liquidity, and overall financial position.

When is legal aid in civil proceedings used in debt collection or receivables management?

In the field of debt collection and receivables management, legal aid in civil proceedings only plays a role in specific situations. It applies whenever a case is conducted before a court. Pre-court measures, however, are not included.

Out-of-court debt collection

In out-of-court debt collection, for example, when a collection agency recovers claims on behalf of a creditor, no support is provided. At this stage, costs arise for reminders, payment requests, or collection letters, which are not covered by the state.

Court proceedings

If a case proceeds to court, for example through the application for a dunning notice or through a lawsuit, legal aid in civil proceedings can be applied for. It then covers the costs directly associated with the proceedings, such as court fees or one’s own attorney fees.

It is important to note: legal aid in civil proceedings only applies to one’s own costs. The costs of the opposing party must still be reimbursed, even if legal aid has been granted.

Which costs are covered by legal aid in civil proceedings?

Legal aid in civil proceedings does not cover all possible expenses, but only specific costs that are directly related to court proceedings.

Court costs

A central component of legal aid in civil proceedings is court costs. These include fees for initiating the proceedings, maintaining the case files, or holding hearings.

Without this support, these costs would have to be borne by the parties themselves, which can quickly become very expensive in complex cases.

Own attorney fees

In addition, legal aid in civil proceedings also covers the costs of one’s own attorney. This ensures legal representation in court without having to pay for it personally.

In such cases, the attorney is compensated according to statutory fee schedules. However, additional optional services or fee agreements that go beyond statutory fees are not covered.

How is legal aid in civil proceedings applied for?

The application for legal aid in civil proceedings is always submitted to the court responsible for the particular case. Without such an application, no support will be granted.

Required documents

The application must include a special declaration of personal and financial circumstances. This form requires information on income, regular expenses, assets, and debts. Depending on the situation, additional documents such as pay slips, bank statements, or rental agreements may be requested.

Procedure at the court

Once the application has been submitted, the court carefully reviews all the information provided. It evaluates both the financial situation and the chances of success of the case. The outcome may vary:

Legal aid in civil proceedings is granted in full.
Legal aid in civil proceedings is granted subject to instalment payments.
Legal aid in civil proceedings is denied.

The court also decides whether the aid applies to the entire proceedings or only to specific parts.

Which legal provisions govern legal aid in civil proceedings?

The legal provisions for legal aid in civil proceedings are set out in Sections 114 to 127 of the German Code of Civil Procedure (Zivilprozessordnung, ZPO).

These sections specify in detail the conditions under which aid may be granted, which costs are covered, and how the application process works.

The provisions apply uniformly to civil cases and are an established part of German civil procedural law.