Author Topic: Bankruptcy in Germany  (Read 8253 times)

Nigel67

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Bankruptcy in Germany
« on: Aug 09, 2017, 07:27:54 PM »
Not sure if anyone can help me please? :-\


The situation is as follows, My Brother currently lives in Germany (20+ years) and has a business that is in trouble to the tune of approx £25,000.00. He has told me that an application for Bankruptcy is being served soon.
Between December 2016 and January 2017 both of our parents unfortunately passed away, so we are in the process of inheriting their property.
What he has told me is that when he is made insolvent in Germany, the German OR can and will try to take the property to sell (it is currently on the Market) and that I can do nothing about this, I do not believe him!
I have spent many days now searching through EU law to try to find out, I now have a fair bit of Knowledge concerning 'COMI's and member states etc[size=100%] but I am finding it very difficult to get any clear and simple information on how It will effect me?[/size]
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Thank you.

Lisa Thomas

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Re: Bankruptcy in Germany
« Reply #1 on: Aug 10, 2017, 09:30:08 AM »
Hi I am sorry to hear about your parents.


I cannot comment on German Bankruptcy but can advise that in the UK this would be correct. 


Either:


1.  The property will have passed to him and belong to him at the time he is made Bankrupt, and his interest in it will therefore vest in the Trustee in Bankruptcy.  The Trustee will then have the ability to repossess and sell the property in order to use the funds to pay towards the costs, interest and debts of bankruptcy.  Any joint owners (you) would then be paid your net share of the proceeds.


2.  The inheritance takes place whilst he is Bankrupt and therefore falls under the 'windfall clause' and again the Trustee will be entitled to the property/proceeds.


He should take advice from someone that specialises in German insolvency.


If he was based in the UK, depending on other factors, I expect that I would likely be advising him to do whatever he can to avoid the Bankruptcy.


Feel free to [** sorry, no personal contact invitations allowed **] to discuss in more detail. My details are below.
www.Nevilleco.co.uk 01752 786800