' Chapter 7 Bankruptcy Exempt Assets - Law Offices of Robert M. Geller
CALL NOW!
FREE PHONE/VIRTUAL CONSULTATION

What Happens to the Property I Lose in My Chapter 7 Bankruptcy?

When you file for Chapter 7 bankruptcy everything you own becomes part of the bankruptcy estate. The only property not included in the estate is exempt property, which varies from case to case, but usually includes things the court allows you to keep to make a fresh start.

The assets in the estate that are not exempt are liquidated, which means they are sold and the proceeds are used to pay back the debts you owe. In some cases, assets in the estate are not sold because their value is less than the effort it would take to sell them or it costs a great deal to maintain them and the trustee cannot sell the item soon enough to make a profit. And there are also instances in which something has a great deal of value to the debtor, but selling it will get little, if any profit.

What happens to all of these items that are not exempted, but not worth the time and effort of the trustee to sell?

The trustee abandons the items. He or she files notice with the bankruptcy court about the intention to abandon the property and then the property reverts back to the debtor. This means the property is once again yours to keep.

It also means that if something is particularly valuable to you, but has limited or unusual financial value, and you have postponed filing for bankruptcy because you were afraid to lose the item, you can move forward with your bankruptcy without fear. Just make sure you let your bankruptcy attorney know about the item and explain the situation. Failing to include the item when you file can get you into a lot of trouble. Not only could your bankruptcy request be denied, you could face perjury charges for reporting your information incorrectly.

Working with an Experienced Bankruptcy Attorney

Filing for bankruptcy can be a scary experience, especially when you think you are going to lose everything. Chances are bankruptcy will disrupt your current situation and depending on the type of bankruptcy for which you qualify, you will lose the majority of your assets.

This is why it is so important to work with an experienced bankruptcy attorney. He or she will explain your option and can provide you with information to help you make the best decision. Sometimes bankruptcy restructures your debt and does not require you to give up valuable belongings, including your home or vehicle.

For many, the loss of certain assets and temporary financial freedom is worth it to get their life back on track. The short-term burden is worth the long-term results.

If you would like to know more about bankruptcy or you are concerned about filing for bankruptcy because of the property you stand to lose, we can help. Contact the Law Offices of Robert M. Geller at 813.254.5696 to discuss your situation and to learn how bankruptcy can help you.

Archive

Video Testimonials

Tampa Bankruptcy Law Blog

How is Marital Debt Divided?

Filing for bankruptcy is a complex process and becomes even more complicated when marital debt is involved. Marital debt refers...
Read More

What is Skip Tracing in Debt Collection?

When you lend money to someone whether it is for personal or business reasons, it’s especially difficult when they don’t...
Read More

What Happens at the End of a Chapter 13 Bankruptcy?

Dealing with bankruptcy is never easy. However, if you find yourself in a situation where you need to file for...
Read More

Can My Wages Be Garnished for My Spouse’s Debt?

Marriage is a partnership that often extends to financial issues, including debt. Unfortunately, not all spouses see eye to eye...
Read More

What Happens When You Get a Court Summons for Debt?

Getting a court summons for debt can be an overwhelming and frightening experience, but it doesn't have to be. Despite...
Read More

Can a Debt Collector Serve You Papers at Work?

Debt can feel overwhelming and stressful, especially if you have creditors calling you at work. Many people wonder whether this...
Read More

What to Do If a Debt Collector Threatens You?

Dealing with debt collectors is stressful and challenging. Even under the best of circumstances, contact from a debt collector is...
Read More

What You Need to Know about Updates to Student Loan Bankruptcy Discharge Laws

Are you struggling to make ends meet because of hefty student loan debt? The good news is that you may...
Read More

What is Considered Harassment from a Debt Collector?

Being in debt is never easy, but it’s especially devastating when you're being harassed by debt collectors. Of course, debt...
Read More

What to Do When You are Drowning in Debt?

Living with overwhelming debt is a distressing experience. It can feel like you are in an endless cycle of bills,...
Read More

Bankruptcy

For The Next 5 Days GET A FREE BOOK About Bankruptcy

Learn More

Infographics

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

Pay Online Bankruptcy Courses Newsletter Subscription

Call For A Free Initial Consultation

813.254.5696

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

Map And Directions

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

Map And Directions