Assets in debt adjustment

You can retain your assets considered a basic necessity in a debt adjustment, i.e. a reasonably priced vehicle, an owner-occupied home , and assets required for your income acquisition.

Vehicle

You may retain a reasonably priced vehicle in a debt adjustment. In deciding whether you may or may not retain your vehicle, the court will consider any disabilities and other personal grounds.

If your payment scheme allows you to retain your vehicle and the vehicle is still subject to a debt, you will repay that debt in full during the payment scheme. Expenses related to the vehicle are not included in the calculation of available funds even if the vehicle is retained.

Example: A debtor has EUR 600 per month in available funds and must pay EUR 200 in monthly car loan instalments. The debtor uses the available funds to pay the EUR 200 monthly car loan instalments and the remaining EUR 400 is put towards the other debts.

Housing

You may retain the owner-occupied house or apartment in which you or your family live permanently, if your available funds are sufficient to cover the secured debt your home is subject to and the minimum accrued amount for repaying any unsecured debt during the payment scheme.

Under a payment plan, unsecured debts must be paid up to the minimum amount. A comparative calculation is made for the minimum amount. This calculation takes into account housing costs according to the most affordable option, for example renting. The minimum amount is the amount that a five-year payment schedule would accrue on unsecured debt under this calculation. 

Among others, income, the debt-free value of the owner-occupied housing, and assessed alternative costs of housing are considered when determining the minimum accrued amount.

The minimum accrued amount must be repaid in 10 years. The repayment period of a secured debt is usually according to the original payment period of the secured debt.

Other assets

Assets not considered basic necessities will be ordered to be liquidated and the resulting liquid assets will be used to repay your debt according to your payment scheme. Holiday homes and shares of deceased’s estates are examples of assets that are not considered basic necessities.

The payment scheme may include a requirement to liquidate your share of aa deceased’s estate in the future, if, for example, the distribution of the deceased’s estate cannot be carried out due to the right of occupancy of the surviving spouse or other circumstances during the payment scheme.