Am I allowed to dispose of my income during insolvency?
November 22, 2023 | 30,00 EUR | answered by Katja Winterberg
Dear Ladies and Gentlemen,
My name is Karl Engel and I am currently in insolvency proceedings. I have a question regarding my income during this time.
The situation: Due to economic difficulties, I had to file for insolvency and am now faced with the challenge of managing my financial situation. I have a stable job and my monthly income covers my living expenses. Now I am wondering if I am allowed to use my income during insolvency or if there are any restrictions.
My concerns: I am worried that I may not be able to freely use my income anymore and may not have enough money to cover my ongoing expenses. I would like to understand the rules and regulations regarding my income and how to behave properly to avoid any problems during the insolvency proceedings.
My question: Am I allowed to use my income during insolvency or are there any restrictions? Are there specific rules I need to follow to stabilize my financial situation and successfully go through the insolvency process? I would appreciate a detailed explanation and possible solutions to clarify my uncertainties regarding my income during insolvency.
Thank you in advance for your support.
Sincerely,
Karl Engel
Dear Mr. Engel,
Thank you for your inquiry regarding your income during the insolvency process. It is understandable that you are concerned about your financial situation and would like clarity on how you are allowed to use your income during insolvency.
In general, you are allowed to continue to have access to your income during the insolvency process to cover your living expenses. Your monthly income is meant to cover your ongoing expenses such as rent, groceries, electricity bills, and other necessary expenses. It is important that you continue to meet your obligations and fulfill your financial commitments.
However, there are certain restrictions you need to be aware of. Typically, a non-seizable amount will be set, which is available to you and cannot be seized by the insolvency administrator or creditors. This amount is based on your income, living situation, and other individual circumstances. It is important that you disclose your financial situation and provide the insolvency administrator with all relevant information to find an appropriate solution.
To stabilize your financial situation and successfully navigate the insolvency process, it is advisable to keep a close eye on your income and expenses. Create a budget plan to utilize your financial resources wisely and avoid potential shortages. Adhere to the agreed rules and regulations and communicate openly and transparently with the insolvency administrator.
It is recommended to seek advice early on and possibly consult a specialist in insolvency law to clarify your rights and obligations during the insolvency process. An experienced attorney can provide comprehensive advice and help you avoid potential problems in the insolvency process.
I hope this information is helpful and clarifies your questions regarding your income during insolvency. If you have any further questions or require personal guidance, I am at your disposal.
Best regards,
Katja Winterberg
Attorney specializing in insolvency law
