What is liquidating your assets
What is liquidating your assets - dating upenn
As you read more about bankruptcy law, you see that you don’t automatically lose your home or car. The filing fee for a chapter 7 bankruptcy petition is currently $306 (not including the cost of a bankruptcy lawyer) although it is possible to ask the court to waive the fee in certain cases.When a chapter 7 case is filed, the debtor lists all of their debts and all of their assets on a series of forms called schedules.
Why is the word “liquidation” associated with chapter 7 bankruptcy?When a tax refund hits, it swells the bank balance above the exemption limits and the next thing you know, the trustee comes knocking.Trustees are also always on the lookout for big ticket items such as homes and cars.Exemption laws vary by state, so the best way to determine whether your chapter 7 case will involve liquidation is to meet with a bankruptcy attorney.Although the cost of bankruptcy is always a concern for those facing financial hardship, most bankruptcy attorneys offer free consultations and are generous with their time.Why is chapter 7 bankruptcy called “straight” bankruptcy?
Maybe you’ve met with a bankruptcy attorney who has reviewed your case and assured you that your property is safe from the bankruptcy trustee. The cost of attorney fees in a chapter 7 case varies widely by region of the country, however, all bankruptcy filings are a matter of public record and it is possible to look up the fees typically charged in your jurisdiction by doing some research on the PACER system.While most chapter 7 debtors are able to file bankruptcy and retain ownership of their home and means of transportation (if they want to), occasionally a trustee will liquidate a home or car that has significant non-exempt equity.As we’ve pointed out before on the forum, trustees really don’t want to liquidate property as it takes lots of time and effort. For this reason, it’s often possible to settle with a trustee by buying out the non-exempt value of an asset. Let’s say Jim and Susan own a home worth 0,000 with a mortgage of ,000.Priority claims are debts that are paid off first or non-dischargeable, such as certain tax bills and child support obligations. Schedule F lists your unsecured creditors who aren’t given priority under the law such as credit card lenders, medical debts and personally guaranteed loans.Once a chapter 7 case has been filed, the list of schedules (along with other required forms) go to a case trustee for review.Thousands of bankruptcy cases are filed each year by people who are entitled to eliminate their debts and whose property is also entirely exempt. After the debtor has turned over property that the law leaves unprotected, their unsecured debts are forgiven or discharged.