Bankruptcy Exemptions Abandonment
What happens to my possessions in Bankruptcy?
If you were filing for Bankruptcy in Stuart, Florida, the status of your property in bankruptcy is subject to its value and the exemptions available to protect the property you wish to retain in through bankruptcy (chapter 7 Bankruptcy). Since chapter 7 bankruptcy is a full liquidation, it is possible for unprotected property to be liquidated (i.e. sold) and the funds from the sale used to pay creditors. What I wanted to mention here and specifically, is that the property which is not exempted is not automatically liquidated. The trustee may not want to liquidate property which is either difficult liquidate or is of little value. This determination is made by the trustee. If the trustee decided the unexempted property was of little value, they would abandon their interest in the unexempted property and the debtor would be able to retain the property.
Since the exemptions in Florida are very limited. It is very important to apply those exemptions properly and to property you wish to keep. If you are looking for a Stuart Florida Bankruptcy Lawyer who cares, call my office and schedule an appointment.