What impact does insolvency have on my private property?
February 5, 2024 | 30,00 EUR | answered by Erwin Hausdorf
Dear law firm,
my name is Claudia Ullmann and I am concerned about my current financial situation. I am facing the possibility of insolvency and I am wondering what impact this could have on my private property.
Background information is that I bought a house a few years ago, where I currently live. Due to unforeseen financial problems, I am now in a situation where I can no longer service my debts and am considering insolvency.
My main concerns are whether my house is at risk in the event of insolvency. I have invested a lot of time, energy and money in the property and I am determined to keep it. I am worried that insolvency could further endanger my financial stability and put my home at risk.
Therefore, I am asking you what specific effects insolvency could have on my private property and if there are possible solutions to protect my house. Are there legal options or measures I can take to secure my ownership?
I would greatly appreciate your professional advice and support on this matter. Thank you in advance for your help.
Sincerely,
Claudia Ullmann
Dear Mrs. Ullmann,
Thank you for your inquiry regarding your financial situation and the possible effects of insolvency on your private property. I understand your concerns and will do my best to assist you in this difficult situation.
If you are facing a financial crisis and considering insolvency, it is important to be aware of the potential impact on your home. In the event of insolvency, your house could potentially be included in the bankruptcy estate to satisfy creditors. This means that your property could theoretically be sold to pay off outstanding debts.
However, there are some options and measures you can take to protect your home from possible foreclosure. One option could be setting up a so-called "property protection company" that can shield your house from creditor claims. It is crucial that these actions are taken before the insolvency proceedings begin to be legally effective.
Another option could be converting your home into unsellable residential property, which is also protected from foreclosure. Registering a residential mortgage can also help protect your house from potential enforcement measures.
It is important to note that these measures are legally complex and require professional advice. As a bankruptcy lawyer, I am available to assess your individual situation and suggest suitable solutions.
It is advisable to seek professional advice early on to take the best possible protective measures for your property. Please do not hesitate to schedule a detailed consultation to discuss your options and protect your property effectively.
I hope this information is helpful and I am available for any further questions.
Sincerely,
Erwin Hausdorf, Attorney at Law
