One of the most important responsibilities of a bankruptcy attorney during Chapter 7 proceedings is to ensure that his or her clients get as much of their personal property exempt from liquidation as possible. The process of getting certain property exempt may require some strategic legal action, but sometimes, bankruptcy filers are surprised at just how much of their property actually qualifies for exemption.
That said, there is certain property that will never be exempt. This no-exempt property usually includes:
Pricey musical instruments
Even though you are likely attached to your musical instruments on a deeply emotional level, according to bankruptcy law, you will have to sell your expensive musical instruments unless you’re a professional musician. If you have musical instruments that you want to avoid liquidating, make sure you talk with your attorney about it.
Any kind of coin, stamp, art and other collections will probably need to be sold during your bankruptcy liquidation.
Your family heirlooms of significant value may also need to be sold in your bankruptcy to help satisfy your debt obligations.
Stocks, bonds, investments, bank accounts and cash
Anything that falls under this category will be subject to absorption by the bankruptcy estate. Failure to give up such items to the bankruptcy estate could cause serious problems for your bankruptcy process.
A second vacation home
Vacation homes are considered to be a luxury by the bankruptcy court and fair game for liquidation.
A second vehicle
Your second vehicle will also be viewed as a luxury and the bankruptcy court will wish to liquidate it. Luxury vehicles as well may need to be liquidated as a part of the process.
If you’re unsure about what may or may not be liquidated in your Chapter 7 bankruptcy, our firm is available to give you an idea about what to expect in your proceedings.