Right of segregation (Aussonderungsrecht, § 47 InsO)

The right of segregation under § 47 InsO covers assets that are in the debtor's possession but legally belong to a third party — leased equipment, consignment stock, goods under a supplier's simple retention of title, or property held only for safekeeping. The rightful owner can demand the asset be handed over in full, without any cost contribution or quota, because it was never part of the debtor's estate to begin with.

The key distinction from the right of separate satisfaction (Absonderungsrecht): segregation concerns third-party property that never enters the estate at all; separate satisfaction concerns debtor-owned but encumbered assets whose realisation proceeds go preferentially to a creditor. The two are frequently mixed up in practice because they look superficially similar — „that actually belongs to someone else” versus „that's secured”.

For asset-deal buyers, the right of segregation is an early due-diligence check: leased vehicle fleets, consignment inventory or rented hardware are not part of the purchased assets even though they sit on the premises. The purchase agreement must clarify that such items are either separately taken over from their actual owner (a new lease or rental agreement) or returned — otherwise handover claims can surface after closing.