When you file for bankruptcy, the court may appoint a trustee to liquidate your assets and have the proceeds distributed to your creditors. However, not all your property may be liquidated as the law provides for exemption of some of your property that is found to be necessary for your sustenance. Any other property that is determined as non-exempt by the court may be liquidated by the trustee. If you have filed for Chapter 7 Bankruptcy in Hamilton OH there are different ways you can avoid liquidation of your non-exempt property. Such methods include:
Paying the trustee
After the trustee has determined all your non-exempt property, they are allowed to go ahead and liquidate it without your approval. You can avoid this by paying the trustee an amount equivalent to the value of the non-exempt property. In some cases, you may be able to negotiate with the trustee and pay fewer amounts than what the non-exempt property is worth.
Switching non-exempt property with exempt assets
There are times when a trustee may determine a certain asset to be non-exempt but to you, it is an exempt asset. On the other hand, what may seem exempt to the trustee may be non-exempt to you. In such a case, you can talk with the trustee to allow you to exchange a non-exempt property with an exempt asset. However, the trustee may deny you the chance to exchange the property if the exempt asset you are exchanging with is of less value or may not get a quick market.
When the trustee abandons non-exempt property
There are times when a trustee may deem the liquidation of non-exempt property unviable. This commonly happens when the value of the property goes below the required proceeds. This is usually caused by accumulation of sale cost that includes the trustee’s commission and paying the third party. Since the sale of such a non-exempt property may not be of any benefit, the trustee may abandon it, and you are allowed to keep it.
If you have filed for Chapter 7 Bankruptcy in Hamilton OH, you can Contact Dean Snyder Attorney At Law to help you keep your non-exempt property. You can also visit Domain URL for more details.