CALL FOR A FREE
INITIAL CONSULTATION
813.254.5696

BRIDGING YOU TO A BRIGHTER FUTURE

What Do I Need to Know about Property Seizure?

Asset SeizureOne of the scariest things that can happen when you’re dealing with out-of-control debt is property seizure. Creditors might legally be allowed to take things you own to satisfy debts and when you file for bankruptcy, the bankruptcy trustee might have the authority to seize certain property.

What should you know about property seizure?

Seizure of property is legal, but laws regarding the seizure of property might vary from state to state. Though the seizure process is similar to repossession it is not exactly the same, so you shouldn’t assume if an asset is protected from repossession that the same will be true for seizure.

To learn more about how repossession works and how it differs from property seizure, check out this information from Edmunds.com.

To seize property, a creditor must file a lawsuit and prove the debt is valid.

If successful, they will be granted a judgment of the court and move forward with the seizure attempt. They must continue to abide by the law, but once the judgment is received there’s a good chance their efforts to seize your property will be successful.

Why Isn’t Seizure of Property More Common?

There are a few reasons why creditors don’t seize property even when you owe them money. One of the biggest reasons is because it’s an expensive process for them.

In order to make the process worth their investment of time and money, your debt needs to be fairly significant and your property needs to have enough value to satisfy that debt.

One of the most common assets creditors attempt to seize are bank accounts. This is due in part to their not having to work that hard to liquidate the property – there’s nothing to sell because the asset is already in cash.

A creditor, armed with a legally obtained judgment, can seize your savings or checking account, or freeze the funds through an attachment and take what they want to satisfy their debt. They gain access to not only the principal but also the interest earned on the account.

Though it’s less common, some creditors seize physical assets, like vehicles. This can be an expensive endeavor for a creditor, but if you’ve built up a large enough debt with them and they know you own property with a significant amount of value, it might be worth their time and money to seize it.

How Bankruptcy Stops Property Seizure

The good news is there is something you can do to stop the property seizure process.

Bankruptcy creates something called an automatic stay, which stops all debt collection efforts against you the moment you file and it protects your ownership of the property, at least temporarily. Property seizure is included in the automatic stay. And depending on whether or not the property in question falls under a state or federal exemption, you might be able to retain ownership in the long-term, too.

Chances are a creditor won’t bother trying to seize physical assets, but if you believe this is happening, filing for bankruptcy will stop it. Most commonly, you’ll need bankruptcy to protect your bank accounts and prevent seizure of the money you have in a checking or savings account.

For more information or to learn about the protections bankruptcy provides, contact the Law Office of Robert M. Geller at (813)254-5696.

Tampa Bankruptcy Law Blog

Social Security and Bankruptcy: Do I Need to Worry about My Income?

Social Security and Bankruptcy: Do I Need to Worry about My Income?

How Bankruptcy and Social Security Are Related Bankruptcy is one of the best tools available for managing significant debt and...
Read More
Bankruptcy and Cross-Collateralization: What You Need to Know

Bankruptcy and Cross-Collateralization: What You Need to Know

Everyone’s financial situation is different, which makes each and every bankruptcy unique – and potentially complicated. One of the things...
Read More
Foreclosure on the Horizon? Here’s What You Can Do to Stop the Process

Foreclosure on the Horizon? Here’s What You Can Do to Stop the Process

Preventing Foreclosure Out-of-control debt can cause a number of problems in your life, but few are as intimidating as the...
Read More
Can I Keep Any Credit Cards If I File for Bankruptcy?

Can I Keep Any Credit Cards If I File for Bankruptcy?

Credit Cards and Bankruptcy One of the most common questions bankruptcy attorneys hear from clients is whether or not they...
Read More
How Does Bankruptcy Affect My Possessions?

How Does Bankruptcy Affect My Possessions?

Bankruptcy and Possessions Filing for bankruptcy can improve your financial situation, but it also has a major impact on many...
Read More

Bankruptcy and Renting: What You Need to Know

Renting a home after bankruptcy There are plenty of people who rent their homes. Many of them are faced with...
Read More
Bankruptcy and Selling Assets: Can I Sell My Vehicle before I File?

Bankruptcy and Selling Assets: Can I Sell My Vehicle before I File?

Can a car be sold before filing for bankruptcy? Plenty of car owners face financial struggles and consider bankruptcy. It’s...
Read More
Your Bankruptcy Timeline: What You Need to Know Before, During, and After You File

Your Bankruptcy Timeline: What You Need to Know Before, During, and After You File

Timeline for Filing Bankruptcy Bankruptcy is not something anyone plans to do in his or her life, but once you’ve...
Read More
How Bankruptcy Affects a 401K Loan

How Bankruptcy Affects a 401K Loan

Bankruptcy affects all aspects of your life, including the money you’ve saved over the years. This is especially true if...
Read More
Five Keys to Post Bankruptcy Success

Five Keys to Post Bankruptcy Success

Post-Bankruptcy Actions in Florida to Help With Bankruptcy Success Bankruptcy is one of the best ways to make a fresh...
Read More

Contact Us

Search Website

Archive

Request a FREE Consultation

For The Next 5 Days Get A Free Book About Bankruptcy


 
comodo 10.0Robert Marc Geller
Robert Marc GellerClients’ ChoiceAward 2018 Robert Marc GellerReviewsout of 32 reviews LEA

We are A Debt Relief Agency.
We help people file for
bankruptcy under the Bankruptcy Code

Pay Online     Bankruptcy Courses    

Tampa Office

$Law Offices of Robert M. Geller, P.A.
807 West Azeele Street
Tampa, FL 33606
T: (813) 254-5696
T: (800) 853-7549
F: (813) 253-3405


Tampa Law Office Map

St. Petersburg Office

$Law Offices of Robert M. Geller, P.A.
125 5th Street South
(Wells Fargo Financial Center)
2nd Floor, Suite G

St. Petersburg, FL 33701
T: (727) 532-3939


Map and Directions

Pasco Office

23526 State Road 54
Lutz, FL 33559
T: (813) 336-2320

Maps & Directions

At the Tampa Bay law firm, the Law Offices of Robert M. Geller, P.A., we help people with consumer bankruptcy matters in the Tampa Bay-St. Petersburg,  Florida communities such as Clearwater,     St. Petersburg, Tampa, Thonotosassa, Riverview, Lutz, Plant City, Brandon, Carrollwood, Wesley Chapel, St. Petersburg Beach, Lakeland, Mulberry, Dade City, Pinellas Park, Largo, Seminole, Odessa, Oldsmar and Lithia, and counties such as Hillsborough County, Pinellas County, Pasco County, Polk County and Manatee County.