Most of the time you get to keep everything you own when you file bankruptcy. It’s all covered by property exemptions. But not always.
Usually you use the property exemptions available for the residents of your state. But not if you haven’t lived there long enough.
What happens when your bankruptcy trustee thinks you undervalued an asset? How does the trustee determine what you own and its value?
Usually everything you own is exempt (protected). But what happens if you own an asset that is not exempt? What does the trustee do? Chapter 7 is the “liquidation” form of bankruptcy. But in our last blog post we introduced the bankruptcy trustee as an only sometimes liquidator. That’s because in most Chapter 7 cases nothing gets liquidated. Nothing … Read More
Besides your creditors, the main person you need to be careful about in a “straight bankruptcy” Chapter 7 case is the trustee. Who’s that?
“Fraudulent transfers” have similarities to “preferences.” They are both worth understanding because they can cause unnecessary hassles.
Inheritances and life insurance proceeds have a special rule when it comes to the timing of your bankruptcy filing.
In most Chapter 7 cases, there is not much practical effect to what creditors put on their proofs of claim.
Pre-petition assets are “property of the bankruptcy estate,” part of your Chapter 7 case. Post-petition assets are not.
Here’s what happens to “priority” debts in an “asset case.”
If you have an “asset” Chapter 7 case, some or all of your debts are partially paid, with most or all of the remaining amounts written off.
If one of your creditors is not included in your “schedules” you risk continuing to owe that debt after your bankruptcy is finished.
Here are more features of Chapter 7 worth knowing and taking advantage of.
If your possessions are not fully protected by the available property exemptions under Chapter 7, Chapter 13 can save the day.
Give your asset to the Chapter 7 trustee to pay a very special creditor. Either because you donât need that asset or itâs your best option.