When you file bankruptcy, you do so with the understanding that you may need to part with some of your assets. This is not done as a punishment. Rather, the trustee will sell those assets to gather money to put toward the debts you owe.
However, the courts also recognize that you still need certain things to live a decent life. This is why some assets are exempt from being sold. Before you file bankruptcy, it is a good idea to discuss the details with our lawyers. This allows you to plan ahead and decide whether bankruptcy is right for you based on your own personal financial circumstances.
Why Assets Are Taken
Obviously, not all assets can be kept after you file bankruptcy. Assets like stocks and bonds can be applied directly toward the debts that you owe. Bankruptcy is a way to find relief from your financial obligations, but the courts still like to see as much money go toward your debt as possible. It simply would not be fair to discharge all of your debts, leaving creditors without the income they expected, and then allow you to keep all of the cash and other assets that might have resolved some of those debts.
In some cases, you may even have secured debts. Whatever you used to secure those debts may be taken by the creditors or the trustee to resolve some those same debts. For information about foreclosure defense, click here (http://www.zerodownbankruptcy.com/foreclosure-defense/).
Assets You Can Keep
Not all assets are taken by the trustee. The courts do not have the goal of making people suffer or making their financial situation worse. They simply want creditors to get as much of the funds they are due as possible. This is why the courts allow people to retain assets that are necessary for survival under normal circumstances. Some of the assets you may be able to keep include the following:
- One Vehicle with a Reasonable Value – No, you may not get to keep the imported sports car of your dreams, but you are likely to keep the SUV that gets you to and from work.
- Monies Owed to You Based on Personal Injury – If someone owes you funds because you won a personal injury suit, you will still get to receive and keep that money.
- Appliances – You don’t necessarily have to turn in your appliances. In some cases, even if the appliances were used to secure a debt, the creditor may not ask you for them.
- Home Furnishings – You can most likely still enjoy your favorite spot on the couch.
Assets that May Be Taken
Any kind of financial asset other than personal injury payments will most likely be taken to cover some of your debts. Beyond that, what you lose will usually be in the form of luxury items. Things like boats, extravagant cars, second vehicles, and second homes will be taken. Collections that have significant value and valuable family heirlooms might also be taken and sold to cover the debts that are left after you file bankruptcy. Read more about Chapter 7 here (http://www.zerodownbankruptcy.com/chapter-7/).
Please share this post online with friends and family members who are considering filing bankruptcy and who may have questions regarding retaining assets.
Florida Bankruptcy Attorneys
Foreclosure Defense Lawyers
Florida Chapter 7 Bankruptcy Lawyer