What happens to my assets during the insolvency proceedings?
March 3, 2022 | 40,00 EUR | answered by Erwin Hausdorf
Dear Lawyer,
My name is Leon Wunderlich and I am currently facing the challenge of having to deal with my company in an insolvency procedure. I would like to learn more about what will happen to my assets during the insolvency procedure.
For background information: Due to the economic situation in recent months, my company has run into financial difficulties. I have already taken some measures to improve the situation, but unfortunately, they are not enough to avert insolvency. Now I am wondering what will happen to my assets in the insolvency procedure.
My main concern is that I do not know what impact the insolvency procedure will have on my personal assets. I am wondering if I could lose my property and if I may have to give up my house or savings.
Therefore, I would like to ask you to provide me with more information on what will happen to my assets during the insolvency procedure. Are there ways to protect or secure my assets? What steps can I take to best resolve my financial situation?
I would be very grateful if you could help me in this difficult situation and provide me with clarity on what to expect.
Sincerely,
Leon Wunderlich
Dear Mr. Wunderlich,
Thank you for your inquiry and your trust in my expertise in insolvency law. It is understandable that you are concerned about your assets, especially in a difficult situation like insolvency proceedings. I am happy to provide you with more information on what will happen to your assets during the insolvency process.
First of all, it is important to know that in insolvency proceedings, all of the debtor's assets belong to the insolvency estate. This means that your personal assets, such as your house or savings, can generally also be part of the process. These assets will be managed by the insolvency administrator and used to satisfy the creditors.
However, there are some ways to protect or secure your assets before insolvency occurs. One option, for example, is to seek early advice from an insolvency expert to identify possible signs of insolvency and take appropriate measures. Also, considering restructuring options or initiating an out-of-court debt settlement process can help protect your assets.
If the insolvency proceedings have already been initiated, it is important to work closely with the insolvency administrator and provide all information about your assets truthfully. The insolvency administrator will conduct a detailed inventory of the assets and decide which assets need to be realized to satisfy the creditors.
It is also possible that certain assets are protected under what is known as personal insolvency, such as the minimum living allowance or certain retirement assets. A thorough examination of the individual situation is necessary to identify possible protection options.
Overall, it is important to seek professional advice early on to protect your assets as best as possible and manage your financial situation. I am available for further questions and individual consultation.
Sincerely,
Erwin Hausdorf, Attorney at Law
