Existing home financing and bankruptcy

Theoretically, there is an amount of €40,000, which of course is part of the insolvency estate. The house can, will, and must therefore be realized by the insolvency administrator. If necessary, by forced auction. But since there may be less to gain in the event of a case, and the bank is still entitled to an additional prepayment penalty, this amount may be significantly reduced. If there is really nothing left to gain, the house can actually be released from realization. However, it could just as well have undergone a massive increase in value and may be worth significantly more.

Anyway, this is an absolutely standard case for debt counseling. Get advice!

Value of the house 300,000 euros

Where does this number come from? I think this forum can best help you with the valuation of the property to give you a realistic view of the value. Name a few details about the property:
- Plot size, standard land value
- Year built, living area, basement, garage, other extras, etc.

Can, and if so how, the wife take over the husband's share?

Sure, the wife could buy the husband's half of the house for €40,000. But will the bank agree to that? Is there still that much clearly separate money from the insolvency estate lying around despite the impending insolvency? Does the wife even have the income to maintain the house alone? Lots of questions.

Again: Go to debt counseling. And a few details about the house would be nice here.

Everything purely fictional ... :rolleyes:

Please report what the debt counselor said in the fictional case.

Nowadays, every property, even in the most remote village, has massively increased in value. Hopefully, the house is worth 400,000€ today, and with the sale, the debts would be paid off. That would be the best case.

Yes, another forum where finance and insolvency are consciously discussed by more professionals rather than just as a byproduct, and yes, more the “how do I get a mortgage” questions come up.

No, rather no forum at all. Building is well suited as a topic for adult education in self-help groups, where other laypeople can also contribute very helpful impulses. But insolvency law is an area where one can put oneself in danger even with advice from semi-professionals (no matter how ambitious they are); with drums and trumpets, cream and chocolate sprinkles.