Can I still own a property during the insolvency proceedings?
January 15, 2023 | 30,00 EUR | answered by Erwin Hausdorf
Dear lawyer,
my name is Roberta Höhne and I am currently involved in insolvency proceedings. I own a property which I would like to keep, as it is my home. However, I am wondering if I am allowed to remain the owner of this property during the insolvency proceedings.
For background information: I purchased the property several years ago and moved in with my family. However, due to financial difficulties, I had to file for insolvency. Now I am worried that I might lose the property in the course of the insolvency proceedings.
My question to you as an expert in insolvency law is therefore: Am I allowed to remain the owner of the property during the insolvency proceedings? Are there possible solutions to protect and keep my home?
I would greatly appreciate a clear and understandable answer, as this question is of great importance to me. Thank you in advance for your help.
Sincerely,
Roberta Höhne
Dear Ms. Höhne,
Thank you for your question regarding insolvency law in relation to your property. It is understandable that you are concerned and want to protect your home. I will now explain in detail what it means to remain the owner of a property during insolvency proceedings and what possible solutions there are.
In principle, it is possible to remain the owner of a property during ongoing insolvency proceedings. However, this depends on various factors, such as the value of the property, your income, and your debts. In insolvency proceedings, the insolvency estate is formed, which consists of the debtor's assets. Your assets will be recorded and may be used to repay your debts.
If your property has a high value, the insolvency administrator may decide to sell the property to satisfy the creditors. In this case, you may have to move out. However, there are also ways to protect your home. One option would be to declare the property as unsellable if you can prove that selling the property would not benefit the creditors.
Another possible solution would be to set up a so-called "assignment declaration." In this case, you assign your income or assets to the insolvency administrator to increase the insolvency estate. In return, you may be able to keep the property. However, this is a complex legal matter that needs to be carefully examined.
It is important that you seek advice from a specialized insolvency lawyer early on to discuss your individual situation and find the best possible solution for you. An experienced lawyer can provide comprehensive advice and help you protect your home.
I hope that my explanation has been helpful and has given you an initial overview of your options. If you have any further questions or would like advice, I am here to help.
Best regards,
Erwin Hausdorf
