Settlement (litigation)

As a comparison, referred to in the law a contract by which the dispute or uncertainty of the parties is eliminated via a legal relationship through mutual concessions ( legal definition in § 779 BGB).

If the settlement agreement for the purpose of amicable settlement of a pending court proceedings ( court settlement ), he has a dual nature: it is both a process and action as well as substantive law business. The process must be taken to compare with judicial protocol ( § 160 para 3 No 1 ZPO). He stopped the process and Enforcement ( § 794 Paragraph 1 No. 1 ZPO). A dispute is ended by a settlement and loses his lis pendens. A court settlement has no legal force.

Mediation in the context of a conciliation procedure before a state-approved grade point offers the parties the opportunity to develop an interest- oriented, friendly and lasting settlement under the mediation of a specially trained neutral third party, the mediator, and conclude with a comparison. The aim of the negotiation is to separate content and relationship level to compensate interests and to seek alternative decisions under neutral evaluation criteria, in order to create a profit for all parties (win -win solution). If there is a comparison, this is documented on the quality of place in a written contract. From this it can possibly how a court judgment enforcement are operated, § 794 Paragraph 1 No. 1 ZPO. The alternative dispute resolution before a state-approved grade point helps the parties to recognize early settlement options and is an economically advantageous alternative to lengthy and expensive court proceedings, usually with an uncertain outcome.

Comparison in the context of a debt or consumer bankruptcy

From a comparison in the context of a debt is called, if it is agreed with the creditors on the basis of ability to pay of a household and / or person to an installment plan that covers the debt with the individual creditors usually only a part. The regular, reliable payments from the debtor to the end of the planned installment of the repayment plan to the creditors to give the creditors a part of the claim satisfied. If the debtor pays to the end of this agreement, him under private law (BGB ) shall be adopted in the remaining claims. This must be agreed in a separate agreement with each creditor. In principle this is possible individually or collectively with each creditor. In the insolvency proceedings ( Insolvency consumer bankruptcy by - Insolvency Act ), however, each creditor must be treated equally, all creditors must agree and the payments must be made in relation quoted single debt to total debt amount.