' 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

Do Both Spouses Have to File Bankruptcy?

For some couples, filing for bankruptcy is the best way to get out from under crippling debt. But what if...
Read More

Will Bankruptcy Ruin My Life?

Bankruptcy is a legal solution for people struggling with unmanageable debt. It can be a difficult decision to make. In...
Read More

Can Bankruptcy Take Inheritance?

Are you considering bankruptcy? Do you have concerns about your assets? Can bankruptcy take your inheritance? Here’s what you need...
Read More

Can You Go to Jail for Filing Bankruptcies?

Bankruptcy is a difficult decision. However, it can be necessary if you are struggling with debt. This is true whether...
Read More

Can You File Bankruptcy If You Don’t Have a Job?

Filing for bankruptcy is an intimidating prospect. Unemployment adds another layer of complexity to the situation. Can you file for...
Read More

Who Pays for Bankruptcies?

When a debtor files for bankruptcy, the court discharges the majority of their debt. This means that the creditors must...
Read More

Do You Have to Go to Court to File for Bankruptcy?

If you are considering filing for bankruptcy, one of the biggest questions you may have is whether or not you...
Read More

Can You Rent After Bankruptcy?

Filing for bankruptcy can be an overwhelming experience, and it’s important to understand the implications of this process before you...
Read More

Can You File Bankruptcy on Unemployment Benefits?

If you’re considering filing for bankruptcy due to financial hardship, it can be helpful to understand the various options available....
Read More

Do Bankruptcies Show Up on Background Checks?

The decision to declare bankruptcy can be difficult, and it is important to be aware of the potential consequences. One...
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