Filing for bankruptcy can be overwhelming, especially if there is a possibility you can lose all your assets. There are cases when the court may force you to sell certain belongings to pay back your creditors— particularly through a Chapter 7 bankruptcy. However, not everything you own will be up for sale. When you file for bankruptcy, there are certain assets and property that are exempt from liquidation. Knowing what qualifies as an exempt or nonexempt asset is key to understanding how Chapter 7 bankruptcy will affect your life.
Examples of Nonexempt Assets
The type of assets that qualify as nonexempt assets will vary from state to state. However, the items listed below are typically considered nonexempt assets:
- A new model vehicle with equity
- Expensive clothing
- Expensive musical instruments
- Real property (which is not your primary home)
- Valuable artwork
- Valuable collections (such as a stamp collection)
In many cases, a lawyer can argue for you to keep your home and a vehicle, but you may not be able to keep the same vehicle you currently own.
Nonexempt Assets in Chapter 7
In chapter 7 bankruptcy, the earnings from the sale of the assets are used to pay off some or all of the creditors. If you are thinking about filing for chapter 7 bankruptcy, you must be willing to liquidate some of your property and assets (listed above) to pay your debts. However, having a Fort Worth bankruptcy attorney on your side means you'll have more control over what you'll be asked to sell and what you're allowed to keep.
Nonexempt Assets in Chapter 13
Although Chapter 13 filers have a repayment plan for the money they owe, they may still need to liquidate nonexempt assets in the process. In most cases, the debtor must repay the creditors at least the value of the nonexempt assets.
Contact an Experienced Fort Worth Bankruptcy Attorney
If you are filing for bankruptcy but are afraid to lose your assets, it is vital to seek guidance from an experienced bankruptcy attorney. Our Fort Worth bankruptcy lawyer can explain the different options available for your case so that you can keep your assets.
Huebner Law Firm has helped hundreds of families recover from their difficult financial situations. Contact us today at (817) 576-1889!