Is my car seizable? It depends

If a creditor has to wait a long time for their money, they can secure their claim by means of the judicial dunning procedure and thus also authorise the attachment of items by the judicial officer. However, the judicial officer is not allowed to take everything. On the seizure of property page, you will find information on what can and cannot be seized.

Unfortunately, the question is not so easy to answer when it comes to cars. In principle, a car counts as an asset and can therefore be seizable. However, there are reasons why a car can be considered exempt from seizure. The judgement is initially in the hands of the judicial officer and must be clarified in court in case of doubt.

1st possibility: Car is needed for work
2nd possibility: Car is needed for health reasons
Repossession in case of high value of the car
Car in insolvency
Favourable alternatives to the car

The car may be protected from seizure if the car is needed to get to work. After all, it would not be in the interest of creditors to cause unemployment.

However, the car is not only protected if the debtor needs the car, but also if it is needed by a person with whom the debtor lives in the same household. A joint household here also means joint management. It has not yet been clarified whether this includes a purely residential community, but family members, relationship partners and other members of a household community are covered by the protection. This cover also applies if the car is needed for vocational training or further education.

In the past, there have also been cases in which the car was considered to be exempt from seizure if the journey to work could be made without a car, but the car is needed in order to be able to go to work at all in addition to caring for the family. For example, a car may be necessary for single parents to take their child to childcare so that they can go to work (to the court decision)

Important: The car is only regarded as exempt from seizure if the journey to the workplace is otherwise unreasonable. There is no precise definition of when this is the case. Unreasonableness must be demonstrated by the debtor in each individual case. The distance to the workplace, working hours and public transport connections are the main factors influencing whether or not travelling without a car is reasonable.

A car may also be exempt from seizure if the car is needed as an aid due to illness. When exactly the car can be regarded as "necessary assistance" is not clearly regulated, but a judgement in the past has shown that it is not sufficient if the car is regularly needed for travelling to a doctor. It is important that no other means of transport, such as bus and train, is available (because there is no connection that can be reached, or these means of transport cannot be used for health reasons). (to the court decision)

Repossession in case of high value of the car

If you need your car for one of the reasons mentioned above and your car still has a high value, there is the possibility of an "exchange seizure". If your car is repossessed, you will be given a less valuable replacement vehicle or an advance on the amount of money to buy a cheaper car yourself. In general, however, this is only permissible if your car has a significantly higher value than the replacement. At the same time, the replacement must have a similarly long service life as your car. (to the court decision)

In insolvency, the same rules on seizability apply in principle, but then the insolvency administrator decides on the realisation or seizability – and not, as before, the judicial officer.

Under certain circumstances, the car can be "bought out" of insolvency with funds that are exempt from seizure. For example, if the car only has a residual value of €2,500, you can usually agree an instalment payment for this amount with the insolvency administrator so that the car remains in your possession. The problem: the funds exempt from seizure (i.e. the money you have at your free disposal to service the instalment payment) are calculated in such a way that you don't usually have much financial leeway. Too high an amount, which may then have to be paid off in high instalments, can become a risk for new debts. You can find out how high the garnishment-free amount is for your income in the garnishment table. The instalment agreement should also not last longer than the insolvency proceedings.

In the event that repossession of your car is unavoidable, there is at least one piece of good news: in most cases, there is no alternative to the car. The alternatives are often even cheaper, because the total bill for a car includes not only the purchase price, but also parking, refuelling, insurance, MOT, repairs, tyre changes and any fines. According to ADAC calculations, only a few (small) cars cost less than 500 euros a month to maintain.

If you want to check what the average monthly costs for your car model are, the ADAC offers a free car cost overview with around 1,500 different models of the best-known car brands.

Use the situation to take a close look at your mobility behaviour and work out which mobility concept is right for you. We have collected a few more favourable alternatives to the car that may help you.

The Deutschlandticket in particular makes public transport a much cheaper alternative to a car at 49 euros per month. We have enquired with various providers and compiled an overview of where you can get the Deutschlandticket even with a negative credit rating.

In many cities and municipalities there are car sharing schemes that may be cheaper than owning your own car, especially if you don't use the car every day. In cities and especially for short journeys, Uber, taxis or other transport services can also be an uncomplicated and inexpensive motorised transport option.

It is often worth considering switching from car to bike. Bicycles require no insurance, no petrol, no taxes or maintenance and no MOT, and in many cases you can even repair them yourself. They are inexpensive to buy and save you a trip to the gym. This can be a good alternative, especially in cities or during the summer months.

The ADFC rates how well you can get around by bike in the city ranking.

Even if your car is spared from repossession, cars are usually a major cost factor. Especially for regular journeys such as to work, a carpool could be worthwhile in order to share the petrol costs with a colleague. Even the trip to the doctor with the neighbour or the parents' taxi for the children's sports programme is more entertaining when they are in the car together. Just ask around to see where you can share journeys and do them together, and don't be afraid to ask for a contribution towards the cost of the journey if you are taking someone with you.

Many people do all their journeys by car because it seems so easy and they have become so used to it. It is often most favourable and sustainable to opt for a mobility mix. Honestly check and calculate for yourself what options are available to you and whether, or in what form, a car of your own is the most suitable option before you start thinking about the possibility of repossession.