(1) If the debtor is a natural person and has made a request for discharge of residual debt, the costs of the insolvency proceedings are deferred on request until such time as discharge of residual debt is granted, insofar as the debtor’s assets are likely not to be sufficient to cover these costs. Deferment in accordance with sentence 1 also covers the costs of the proceedings regarding the plan for the settlement of debts and the proceedings for discharge of residual debt. The debtor must enclose with the request a declaration as to whether a ground for refusal under section 290 (1) no. 1 pertains. Deferment is ruled out if such a reason pertains.
(2) If the costs of the proceedings are deferred to the debtor, then upon request, a lawyer (Rechtsanwalt) of the debtor’s choice is appointed who is willing to represent the debtor if representation by counsel appears to be necessary despite the duty of assistance incumbent on the court. Section 121 (3) to (5) of the Code of Civil Procedure applies accordingly.
(3) The effect of deferment is as follows:
1. the Federal or Land Treasury may claim
a) court costs in arrears and those arising,
b) the claims of the appointed lawyer which transfer to the Treasury
against the debtor only in accordance with the provisions made by the court;
2. the appointed lawyer is unable to assert claims for fees against the debtor.
Deferment is effected separately in respect of each stage of the proceedings. Until such time as a decision is made regarding deferment, the effects specified in sentence 1 apply on an interim basis. Section 4b (2) applies accordingly.