Protection of private assets

Creating scope for the future

When it comes to the consequences of an insolvency, the question of the protection of private assets usually also arises.

In principle, the private assets of the managing director remain untouched in the insolvency proceedings of a GmbH – in this case, liability claims often come into play – in the case of the insolvency of a private corporation or a limited commercial partnership, all liability claims are transferred to the insolvency administrator, who then asserts them directly with the shareholder. In the case of the insolvency of a sole proprietor, the entire assets fall directly into the insolvency estate. In such cases, there is unfortunately no such thing as protective assets and future income is also fully attachable except for a small deductible.

These circumstances are usually well known and often lead to ill-considered measures by the entrepreneur before the insolvency proceedings, which are threatened by liability. In principle, all transfers of assets designed to protect them from creditors can be reversed. In order to prevent this, the legislator has, for example, made the transfer of assets or their concealment a punishable offence, and has also created an extensive right of rescission.

Use the structuring options in a legally secure manner

However, even here it makes a big difference whether you have been advised in advance to explore all the available options.

For example, retirement provision contracts can be secured against seizure relatively easily. Moreover, not all transfers are contestable, or only under certain conditions. Those who know and take these into account can protect themselves and their family at least partially from the consequences of insolvency proceedings.

In addition, there are various options for structuring available in corporate or family law or measures to protect company assets, the application of which we will examine and design for you in your case.

We analyse the possibilities of protecting private assets in your individual case and support you in the legal design of a sustainable asset protection concept. It makes a big difference whether you enter insolvency proceedings well prepared or whether you simply let it come to you. Keep the booklet of action in your hand. We support you with our competence as lawyers specialised in insolvency law.