Can I keep my car if I have to file for bankruptcy?
July 26, 2023 | 30,00 EUR | answered by Katja Winterberg
Dear bankruptcy lawyer,
I am currently facing the difficult decision of having to file for bankruptcy. Due to financial difficulties and debts, I am unable to afford my monthly payments and am forced to take this step. In this context, the question arises as to whether I can keep my car if I have to declare bankruptcy.
My car is not only a means of transportation for me, but also essential for my job as I rely on it to get to work every day. It is an older model, but it is very dear to me and means a lot. I have considered selling the car to pay off my debts, but I am unsure if this is really necessary.
My concern is that after filing for bankruptcy, I could lose my car and put my job at risk. Are there ways to keep my car even if I have to declare bankruptcy? Are there specific requirements that must be met to keep my car? How can I best protect myself and my car in this situation?
I would greatly appreciate your assessment and any suggestions for solutions to clarify my uncertainties regarding my car in this difficult situation.
Sincerely,
Anna Nitsche
Dear Mrs. Nitsche,
I understand your concerns and uncertainties regarding your car in relation to a possible insolvency application. It is important to know that it is generally possible to keep your car even in the event of insolvency. However, there are certain requirements and regulations that need to be considered in this regard.
First and foremost, it is important to know that in Germany a certain exemption amount for necessary items is set, which may not be included in the insolvency estate. This includes household goods, clothing, and also a reasonable vehicle. The exact value of the exemption amount may vary depending on the personal situation and should be discussed individually with an insolvency lawyer.
Regarding your car, it is important that it is a reasonable and necessary vehicle. This means that your car should be indispensable for your professional activities and also for your everyday mobility. An older model that is important to you and is needed for your commute to work could be considered a necessary vehicle in this case.
It is also important that the value of your car does not exceed the exemption amount. If the value of your car exceeds the exemption amount, there is a possibility that you may have to transfer a portion of the value to the insolvency administrator. However, this can be clarified on a case-by-case basis and depends on various factors.
To best protect yourself in this situation and to protect your car, I recommend contacting an experienced insolvency lawyer. An insolvency expert can assess your individual situation and provide you with tailor-made solutions. Together, you can discuss options on how to keep your car in insolvency and what steps are necessary for this.
I hope that this information helps you and alleviates some of your uncertainties regarding your car in the insolvency situation. Do not hesitate to contact an insolvency lawyer to discuss your questions and concerns in detail.
Best regards,
Katja Winterberg, Attorney specialized in insolvency law
