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.
Use the Property Exemptions You Qualify For
Usually you use the property exemptions available for the residents of your state. But not if you haven’t lived there long enough.
Your Chapter 7 Trustee Disputing an Asset’s Value
What happens when your bankruptcy trustee thinks you undervalued an asset? How does the trustee determine what you own and its value?
An Asset Unprotected
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
The Trustee in a Chapter 7 Case
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
“Fraudulent transfers” have similarities to “preferences.” They are both worth understanding because they can cause unnecessary hassles.
Special Bankruptcy Rule about Inheritance
Inheritances and life insurance proceeds have a special rule when it comes to the timing of your bankruptcy filing.
Creditor Proofs of Claim
In most Chapter 7 cases, there is not much practical effect to what creditors put on their proofs of claim.
Your Assets and the Timing of Filing a Chapter 7 Case
Pre-petition assets are “property of the bankruptcy estate,” part of your Chapter 7 case. Post-petition assets are not.
Treatment of “Priority” Debts under Chapter 7
Here’s what happens to “priority” debts in an “asset case.”
Debts Partly Paid in an “Asset” Chapter 7 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.
Listing All Creditors in Your Bankruptcy Documents
If one of your creditors is not included in your “schedules” you risk continuing to owe that debt after your bankruptcy is finished.
Giving Thanks Again for Chapter 7 “Straight Bankruptcy”
Here are more features of Chapter 7 worth knowing and taking advantage of.
How Does Chapter 13 Protect Possessions that You’d Lose in Chapter 7 Bankruptcy?
If your possessions are not fully protected by the available property exemptions under Chapter 7, Chapter 13 can save the day.
Crucial Question: How Can I Use an Unprotected “Non-Exempt” Asset to My Benefit Even Under Chapter 7 “Straight Bankruptcy”?
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.