What rights do I have as a debtor in the insolvency proceedings?
March 14, 2024 | 40,00 EUR | answered by Erwin Hausdorf
Dear Sir or Madam,
My name is Maria Zollmann and I am facing a difficult financial situation that has forced me to initiate insolvency proceedings. I am unsure about my rights as a debtor in this process and hope that you can help me.
Background information: I have had significant financial problems in recent years that have worsened over time. Despite my efforts to repay my debts, I am now forced to file for insolvency. I feel overwhelmed and do not know what rights I have as a debtor.
My concerns mainly revolve around what will happen to my assets and debts. I am worried about whether my creditors can seize all of my assets and how I can protect my personal belongings. Additionally, I am concerned about the possibility of losing my job or having my bank account frozen.
Therefore, I am wondering what rights I have as a debtor in insolvency proceedings. Are there ways to protect my assets or limit my debts? Can I keep my personal belongings and how can I protect myself from further financial difficulties? I would greatly appreciate your help and guidance during this difficult time.
Sincerely,
Maria Zollmann
Dear Mrs. Zollmann,
Thank you for your inquiry regarding your rights as a debtor in the insolvency proceedings. It is understandable that you are concerned and worried about what will happen to your assets, debts, and personal belongings. I would like to provide you with some information and tips that can help you understand your rights and improve your financial situation.
As a debtor in the insolvency proceedings, you have various rights that can help you manage your financial situation. Firstly, it is important to know that in insolvency proceedings, all your assets are captured. This means that your assets belong to the insolvency estate and are managed by an insolvency administrator. The insolvency administrator will sell the assets to satisfy your creditors.
However, it is important to note that there are certain assets that do not belong to the insolvency estate and are protected. These include necessary household items, work tools, and personal belongings. You can usually keep these items as long as they are not excessively valuable.
Furthermore, as a debtor in the insolvency proceedings, you have the option to apply for so-called debt discharge. This means that after the completion of the insolvency proceedings, the remaining debts can be forgiven. This is a way to limit your debts and start fresh financially.
It is also important to know that your job is generally not at risk in insolvency proceedings. While your account may be temporarily frozen, this is done to protect the insolvency estate and ensure a fair distribution to the creditors.
To protect yourself from further financial difficulties, it is advisable to seek professional support. An experienced insolvency lawyer can advise you throughout the process and help you enforce your rights.
I hope that this information helps you and gives you a better understanding of your rights as a debtor in the insolvency proceedings. If you have any further questions or would like a personal consultation, I am happy to assist.
Best regards,
Erwin Hausdorf
