NCJ Number
88784
Journal
Bewaehrungshilfe Volume: 28 Issue: 2 Dated: (1981) Pages: 118-128
Date Published
1981
Length
11 pages
Annotation
In 1975, the West German State of Baden-Wuerttemberg established a resocialization fund to assist heavily indebted ex-offenders toward financial solvency through debt consolidation.
Abstract
Debt management guidance services are performed by probation officers. They assist clients in negotiating with creditors for debt-reduction and in obtaining interest-free loans (up to 15,000 German marks) from the State-operated foundation with which disparate creditors can be paid off, leaving the clients with a single long-term installment obligation within their means. Baden-Wuerttemberg used State funds from correctional resources to obtain initial capital for the program. Program goals are to forestall recidivism of ex-offenders by assisting them to maintain financial solvency. Program eligibility requires the commitment and active involvement of the client, who must evidence both willingness and ability to hold a job and meet the restructured financial obligations. By 1980, the program had had 103 clients (85 percent of whom met their payments on schedule), paid off more than 4.1 million German marks in ex-offender debts, and satisfied 816 creditors. None of the clients have totally defaulted repayment, and new loans (340,000 German marks for 1981) can be financed from the flow of repayments into the foundation. Tabular data are supplied.