Local Law Firms Home > Bankruptcy Overview > Chapter 7 > Exempt Property: Jewelry If you have a car that is paid off in full or that has a lot of principal put into it, it is most certainly an asset and one asset that many people worry about losing after filing for Chapter 7 bankruptcy. While a car may wind up being repossessed if payments are not made, a car that is paid in full and belongs to you cannot be taken by a creditor or a collection in order to satisfy an outstanding debt. This categorizes vehicles as exempt property during a Chapter 7 bankruptcy.
A "Buy Back" in a Chapter 7 declaration is where the individual makes an offer to buy their unencumbered, non-exempt property back from the Chapter 7 trustee. When you declare chapter 7, you are required to list all your valuables. Your lawyer will then put your state and constitutional exemptions on these valuables to safeguard any equity they may have. If they can't be entirely protected, then the chapter 7 Trustee has the prerogative to sell them to the highest bidder. Usually, that is the debtor. Your lawyer will make the offer to purchase back the equity in the property and request that the payments be made over a designated amount of time. Do you have legal questions regarding Chapter 7 bankruptcy and exempt property, such as a car? Our bankruptcy law attorneys are here to help answer all of your questions and inform you of your rights. Contact a bankruptcy lawyer in your area today for more information. Did you know? |