Can I still drive a car during bankruptcy?
March 19, 2022 | 40,00 EUR | answered by Erwin Hausdorf
Dear lawyer,
My name is Ulrike Maier and I am currently in insolvency proceedings. In this difficult situation, I have some questions regarding my mobility and my car. I am employed and rely on my car to get to work and take care of my children. I am concerned about whether I am allowed to continue driving my car during insolvency and what impact this could have on my insolvency proceedings.
My car is financed and I have regular payments to make. Is it possible that my car could be seized as part of the insolvency proceedings? Is there a way for me to keep and continue using my car, even while in insolvency? What legal regulations apply to the use of a car during insolvency?
I want to ensure that I can continue to meet my professional and family obligations, even while in insolvency. What options do I have to keep and use my car? Are there any special regulations or exemptions that could help me in this situation?
I thank you in advance for your support and look forward to your competent advice on this matter.
Sincerely,
Ulrike Maier
Dear Mrs. Maier,
Thank you for your inquiry regarding your car and your mobility during the ongoing insolvency proceedings. It is understandable that you are worried and want to ensure that you can continue to fulfill your professional and family obligations. I will now explain to you in detail the legal regulations regarding the use of a car during insolvency.
First of all, it is important to know that the so-called insolvency employment prohibition applies in insolvency proceedings. This means that as a debtor, you are not allowed to dispose of your assets without the consent of the insolvency administrator, which includes the sale or pledge of assets such as your car. However, this does not necessarily mean that your car will be seized.
The question of whether your car will be seized in the insolvency proceedings depends on various factors. Generally, self-used vehicles up to a certain value are protected and cannot simply be seized. Usually, a reasonable car for professional and private mobility is safeguarded in insolvency proceedings.
If your car is financed and you make regular installment payments, your installment payment agreement with the bank should continue to be valid. Insolvency should not have direct effects on this agreement as long as you continue to pay the installments on time. It is important that you inform the insolvency administrator about your car and the financial agreement to avoid any misunderstandings.
There are various ways to keep and continue using your car during insolvency. Usually, the insolvency administrator will assess whether the car is necessary for your professional and private needs and whether it is appropriate. If so, the car is usually not seized. It is important that you provide the insolvency administrator with all relevant information about your car to explain your situation.
There are also special regulations and exceptions that could benefit you during insolvency. For example, under certain circumstances, you can apply for a so-called driver's license to continue driving. This can help you continue fulfilling your professional obligations.
Overall, it is important that you communicate openly with your insolvency administrator and share all relevant information about your car and financial situation. Only then can you ensure that your car remains protected and you can continue to be mobile.
I hope this information is helpful to you and I am available for any further questions.
Sincerely,
Erwin Hausdorf, Attorney
