Cancellation of a loan and debt collection

Anyone's got any experience with this? What happens when your Loan is gekuendigt, and they pass it on to their Inkasso department? I am unemployed at the moment, so there's no way I can pay either the monthly rates or the loan back.

Get in touch with the bank/collecting agency right away, explain your situation and send them any paperwork you might have from the Agentur für Arbeit (Antrag, Bewilligungsbescheid). That is if you qualify for dole. The agency will send a nasty letter telling you to pay up by a certain date, which can be a short as 5 working days. If you can't pay up they will send you a Mahnbescheid (court order) which you can contest within 14 days of receipt, the whole thing then will go to court. If you don't contest you will receive a Vollstreckungsbescheid (enforcement order) which is valid for 30 years, the agency will then send the bailiff around to see if he can collect anything off of you.
All in all, I advise you to cooperate with the agency and try to avoid the court order things as they are entered in a central register (Schufa) and can ruin your credit rating.
PM me for more detailed advice if you like.

Sarabyrd's right.

Not to rub salt in your wounds, but why didn't you go straight to your bank, explain the situation and try to get the terms eased for the duration of your unemployment? You had to have waited a couple months for them to have said "Scheißd'rauf" and hand your loan over to the Inkasso.

You cannot ignore a problem in Germany, especially when it comes to money. It will not go away and it will get expensive. Due to fees, costs, interest, lawyers and courts, anything financial can balloon up to four times the original amount in question.

woof.

If you make an offer to pay they will find it very hard to get it to stand up in court and have a baliff sieze your stuff. Don't know the contact details but there are free debt counsellors in Munich.

DO NOT ignore it, take action TODAY!

All the best!