Bankruptcy estate

The bankruptcy estate, which serves to satisfy the creditors, comprises the entire assets that belong to the debtor when the proceedings are opened and that accrue to him during the time that the proceedings last (Section 35 InsO).

Allerdings fallen in die Insolvenzmasse nicht Sachen, die zum gewöhnlichen Hausrat gehören und im Haushalt des Schuldners gebraucht werden; Gegenstände, für die ein dingliches oder persönliches Recht geltend gemacht werden kann (z. B. unter Retention of title gelieferte Sachen oder Hypotheken) sog. Absonderung.

Otherwise, all creditors are treated equally. Even the holders of liens or security property (e.g. items that are assigned by way of security) lose 25% of the proceeds in favor of the creditors who cannot provide any special security.

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