Existing home financing and bankruptcy

Hello,
the following fictional case:
A self-employed person owns a house together with his wife. Value of the house 300,000 euros. Debt 220,000 euros.
The man has to file for insolvency. However, it has not yet been applied for. The financing is in both names.
The debts going into insolvency will be approx. 100,000 euros.

My questions:
What happens as soon as the financing bank learns that a borrower is insolvent?
Can, and if so how, the wife take over the husband’s share?
What should both do in advance before the insolvency is filed? Any tips?

Thank you very much for your answers.

Hi, my very amateur opinion: If the woman earns enough from the lender's point of view, she could probably cover the installment alone. As a rough estimate, at least €1,000 monthly is calculated per €100,000 debt. But it's up to the bank.

The insolvency administrator will probably also take a look at the €80,000 difference. Depending on the asset division, he might want half (more or less). Before filing for insolvency, there is probably not much left to rearrange, because the insolvency administrator could consider that as possible concealment and that could negatively affect the proceedings.

What should both do in advance before filing for insolvency? Any tips?

Contact an insolvency or debt counselor in advance. They provide proper advice.

If the man has to go into insolvency must, but the application has not yet been submitted, then this should happen as soon as possible so that he does not commit a criminal offense. Trying to quietly secure any assets afterwards would at least be borderline legality.

Contact professionals. If the house is not separated from the self-employment and he is personally liable with property, the house is at stake. And it is irrelevant whether you shift anything now.

But in such a case, you think ahead.

Any tips?

Yes, another forum where finance and insolvency are consciously discussed by more experts, rather than just as a side topic, and yes, more the "how do I get a mortgage" questions come up. Purely hypothetical ;)