Is it possible to save assets in insolvency proceedings?
June 26, 2024 | 40,00 EUR | answered by Katja Winterberg
Dear lawyer,
My name is Anna Hausdorf and I am currently in a difficult financial situation. Due to high debts and lack of income, I have decided to file for bankruptcy. Now I am very worried about my assets and wonder if it is possible to save any of them in the bankruptcy process.
My situation is as follows: I have high debts with various creditors and my monthly income is not enough to cover these debts. I have tried to negotiate installment payments with the creditors, but without success. Now I am faced with the decision to file for bankruptcy in order to resolve my financial situation.
My concern is that I could lose all of my assets through the bankruptcy process. I have a house that is very dear to me, as well as savings and other valuables. Is it possible to save and protect these assets while I am in the bankruptcy process?
I would like to know what options there are to secure my assets and what steps I need to take. Are there specific laws or regulations that can help me with this? I am grateful for any advice and support to secure my financial future.
Thank you in advance.
Sincerely,
Anna Hausdorf
Dear Mrs. Hausdorf,
Thank you for reaching out and trusting in my expertise in the field of insolvency law. It is understandable that you are concerned about your assets and would like to know if it is possible to protect them in the insolvency process. I will therefore explain in detail the options available to secure your assets.
It is important to know that in the insolvency process, all your assets are considered as the so-called insolvency estate. This means that the assets you own at the time of filing for insolvency can be used to satisfy your creditors. This includes not only your house, but also your savings and valuables.
However, there are legal regulations and options to protect certain assets from the insolvency estate. One option is, for example, to undergo a consumer insolvency, also known as personal insolvency. In consumer insolvency, debtors have the opportunity to apply for discharge of their remaining debts. This means that after a certain period of good behavior, during which the debtor pays their disposable income to the insolvency administrator, remaining debts are forgiven.
During the period of good behavior, it is important to disclose all disposable assets and pay them to the insolvency administrator. This may mean that you have to give up certain valuables or savings. However, there are certain assets that are usually not considered part of the insolvency estate, such as household goods, personal items, or reasonable clothing.
Therefore, it is advisable to consult with a specialized insolvency lawyer early on to discuss your individual situation and take appropriate measures to protect your assets as best as possible. An experienced lawyer can assist you in creating an insolvency plan and inform you about your rights and obligations in the insolvency process.
I hope this information is helpful to you and wish you all the best for your financial future.
Best regards,
Katja Winterberg
