Local Law Firms Home > Bankruptcy Overview > Chapter 7 > Non-exempt Property: Musical Instruments Ask any musician: While some musical instruments may be extremely inexpensive, there are many musical instruments that are worth a lot more. In fact, some musical instruments can be worth tens of thousands of dollars. Because of this, this makes certain musical instruments an asset, and all assets need to be considered and thought of when it comes to filing for Chapter 7 bankruptcy. When it comes to Chapter 7 bankruptcy, musical instruments of value are classified as non-exempt property, which means that they are subject to collection upon the declaration of Chapter 7 bankruptcy.
There are many states throughout the country that have taken advantage of the alterations in the Bankruptcy Code that allows each state to adopt its own exemption regulations in place of the federal exemptions, and in these states, the treatment of exemptions is very similar to what it was before the Bankruptcy Code was implemented in 2005. Did you know? In sixteen states, in addition to the District of Columbia, debtors have the options to select the exemptions that work ideally for you - either the federal exemptions or your home state's exemption regulations. It is always ideal to check with a bankruptcy lawyer in your local area to see what exemptions apply to your specific and unique case, and if your valuable musical instrument(s) may be subject to collection after declaring a Chapter 7 bankruptcy.
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