CALL FOR A FREE
INITIAL CONSULTATION
813.254.5696

BRIDGING YOU TO A BRIGHTER FUTURE

What Do I Need to Know about Property Seizure?

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

What are Your Bankruptcy Options?

What are Your Bankruptcy Options?

How Bankruptcy Works Bankruptcy can be a powerful tool to help you get back on track financially. But before you...
Read More
Bankruptcy and Your Tax Return

Bankruptcy and Your Tax Return

How Bankruptcy Can Affect a Tax Return Receiving an income tax return can feel great and help you get caught...
Read More
Borrower Beware! What You Need to Know about Debt Relief Services

Borrower Beware! What You Need to Know about Debt Relief Services

Are Debt Relief Sevices Legit? If you feel as if you are drowning in debt you’ve no doubt considered a...
Read More
Four Mistakes to Avoid When Managing Your Finances after Bankruptcy

Four Mistakes to Avoid When Managing Your Finances after Bankruptcy

Avoid These Common Financial Mistakes After Filing for Bankruptcy Managing your finances after bankruptcy can be a challenge, especially if...
Read More
Tips for Handling Creditor Harassment

Tips for Handling Creditor Harassment

Creditor Harassment and Bankruptcy Dealing with a significant amount of debt is difficult enough, but when creditors began hounding you...
Read More
Unexpected Debts that Can Lead to Bankruptcy

Unexpected Debts that Can Lead to Bankruptcy

Unexpected debt can cause financial issues and Bankruptcy Unemployment, poor management of credit cards and even divorce can push people...
Read More
What You Need to Know about Tax Identity Theft and How It Can Affect Your Credit

What You Need to Know about Tax Identity Theft and How It Can Affect Your Credit

Tax Identity Theft and Credit The increasing popularity of filing tax returns online has given way to a rise in...
Read More
How To File for Bankruptcy [Infographic]

How To File for Bankruptcy [Infographic]

The Bankruptcy Filing Process Need to file for bankruptcy but not sure where to begin? The Law Offices of Robert...
Read More
Five Things You Need to Know about Bankruptcy Fraud

Five Things You Need to Know about Bankruptcy Fraud

What is Bankruptcy Fraud The average person filing for bankruptcy has no intention of committing fraud. He or she is...
Read More
The Importance of Being Prepared: What You Need to Bring with You to Your Bankruptcy Consultation

The Importance of Being Prepared: What You Need to Bring with You to Your Bankruptcy Consultation

Preparing for a Bankruptcy consultation with a Bankruptcy Lawyer Filing for bankruptcy is a big decision. One of the most...
Read More

Contact Us

Search Website

Archive

Request a FREE Consultation

For The Next 5 Days Get A Free Book About Bankruptcy


 
comodo10.0Robert Marc Geller
Robert Marc GellerClients’ ChoiceAward 2018Robert Marc GellerReviewsout of 32 reviewsLEA

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.