Germany
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Kanzlei Verbracken & Partner
Insolvency with property: home, mortgage and remaining debt
Property makes debt planning more complex. Ownership, borrowing, security and personal liability may involve different people. Proceedings guarantee neither retention of the home nor disappearance of all lender claims.
Four questions to clarify first
Who is registered as owner? Who signed the loan? What security exists? What are the realistic value and current balance? These define the starting point. Sharing a household does not automatically mean shared ownership, and someone may owe the loan without owning the entire property.
Security remains a separate issue
Personal discharge differs from rights over the property. Secured creditors may have separate recovery rights. Looking only at personal loan liability is therefore insufficient. Assess co-owners, guarantors and other co-obligors before recommending a debt procedure.
Sale, realisation and the remaining balance
Sale proceeds may not cover the loan, interest and costs. Any remaining personal claim needs separate assessment, as does entitlement to a surplus. Avoid hurried transfers to relatives, which can create additional legal problems.
Useful documents
Prepare land records, loan and security agreements, current balances and a credible valuation basis. Include tenancies and enforcement dates. German property remains important when considering foreign proceedings: jurisdiction, security and asset treatment need assessment together.
Sources and legal foundations
Sources checked: 14 September 2026
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