Right of separate satisfaction (§§ 49–51 InsO)

Creditors holding an in-rem security interest over an asset of the insolvency estate — land charges (§ 49 InsO), security ownership or extended retention of title over movables and receivables (§ 51 InsO) — do not need to surrender the secured asset for equal distribution among all creditors. Instead it is realised separately (usually by the administrator), and the proceeds flow preferentially to the secured creditor, minus a lump-sum contribution to the estate for assessment and realisation costs (§§ 170 f. InsO).

This is distinct from the right of segregation (Aussonderung, § 47 InsO): segregation concerns assets that never belonged to the debtor in the first place (e.g. simple retention of title, leased equipment, consignment stock) and fall entirely outside the estate — without any cost contribution. Separate satisfaction, by contrast, concerns assets that the debtor does own but that are encumbered — they remain part of the estate, but their realisation proceeds are earmarked with priority.

This is practically decisive for asset-deal buyers: machinery, vehicle fleets or inventory of the target are frequently assigned as security to a financing bank or held under a supplier's extended retention of title. A clean acquisition requires that the purchase price (or an allocated portion of it) discharges the relevant security interests — this lien release (Lastenfreistellung) is therefore a standard part of any purchase-price allocation and must be coordinated with the administrator and secured parties before signing.