Filing for bankruptcy is a highly effective process for finding long-term, permanent debt relief. Not only does bankruptcy treat the majority of common individual debts, it also creates a situation for debtors to learn better financial practices and it protects the local and national economies from an excess of debts that won’t be repaid. If you are considering filing for bankruptcy, you’re not alone. Thousands of Americans file each year. With the help of Behm Law Group, Ltd, you can build a successful case for Chapter 13 or Chapter 7 bankruptcy in Worthington, MN.
Chapter 7 bankruptcy is the most commonly filed type of bankruptcy for individuals and consumers alike. It works to discharge your debts in exchange for the liquidation of your non-exempt assets. This means you may lose some non-exempt property in Chapter 7, but it doesn’t mean you’ll be left destitute with nothing to your name. In fact, thanks to the allotted exemptions you’ll be able to claim, most if not all of your property, like your home or car, will be protected. In fact, in the vast majority of chapter 7 bankruptcy cases, all people lose are their debts and no property is lost at all.
On the other hand, the property that cannot be exempted or protected will be liquidated or sold by the chapter 7 bankruptcy trustee. This often includes luxury items and other uncommon properties. Some unusual properties that might be subjected to the liquidation process include:
- Pets: Most pets won’t be of any interest to your trustee because their monetary value is often insignificant in comparison with the rest of your property. However, if your pet is a rare breed, exotic animal, show-breed, or other expensive animal, it could literally be worth thousands of dollars. In that case, your pet could, unfortunately, be sold in the bankruptcy process.
- Artwork: If you own valuable artwork, you may not be able to exempt or protect all of it from the bankruptcy process. Depending on the circumstances of your case, if it has a lot of value, your trustee could sell or liquidate it.
- Jewelry: While exemptions can protect some of the value of one’s jewelry, some people could lose some of their jewelry depending on its overall value.
- Boats: Boats are expensive, and if you’re filing for bankruptcy and own a boat, it’s likely you have a lot of debt to get rid of in a bankruptcy. Because of this, it may be difficult to exempt a boat from liquidation if that vessel has a lot of value.
- Collections: Valuable collections often include rare items, complete assortments, antiques, or specialty trading cards. Even card collections like Magic the Gathering or Pokémon can be of value today. If you’ve put time and energy into compiling a valuable collection, it’s important to understand that, depending on its overall value, it could be liquidated in a Chapter 7 bankruptcy.
If you are considering filing for Chapter 7 bankruptcy in Worthington, MN and want to know more about exemptions, contact Behm Law Group, Ltd today at (507) 387-7200 or via email at stephen@mankatobankruptcy.com.
