Substitute right of separation

The right to seek the consideration paid or assignment of the unpaid consideration after an asset subject to separation was sold.

In brief

Section 44(2) IO addresses an asset capable of separation that was sold after insolvency proceedings opened. Depending on payment status, the entitled person may seek separation of consideration already paid from the estate or assignment of the claim to outstanding consideration.

This substitute right concerns what replaced the sold asset. It must be distinguished from recovery of an asset still present and from an ordinary monetary claim. The topic hub on separation rights explains the ownership route; a separate payment claim follows the claim filing route described in this German language guide.