For those who have overwhelming debt, bankruptcy is a good option. It can help you relieve your debt and to get your financial situation back in order. If you plan to file Chapter 7 bankruptcy, you must liquidate your assets to pay off your debts.
Many consumers wonder whether they have to list all of their assets when filing for bankruptcy. Here is what you need to know.
Types of Assets
There are three types of assets that you have to list when filing for bankruptcy. The types of assets include your personal property, intangible property and real property. Your personal property refers to your clothing, artwork, vehicles and furniture. Real property is any land or buildings you own, whereas intangible property are assets like retirement savings, child support and alimony.
When you list your assets, you have to file a complete record of all of your assets. You should include any secured or unsecured assets in the list. The list of assets does not only include assets you have to liquidate. Make sure you include all land you own, all vehicles you own, any business-related property and financial assets, as a lawyer like a bankruptcy lawyer Danbury, CT from a law firm like CT Bankruptcy Attorneys, can explain.
There are some assets that you can keep in bankruptcy and others you may have to liquidate. For example, vehicles are assets that creditors can pursue. However, in some instances, you may be able to keep your vehicle. Generally, it depends on whether you owe money on the vehicle and whether it is your primary source of transportation.
Likewise, you may not be able to keep your vacation home, but you can keep your primary residence. Similarly, you are given limits for different pieces of property. You can keep jewelry up to $1700 worth and any health aids.
You should never hide your assets when filing for bankruptcy. The trustee assigned to your case does have the right to liquidate any non-exempt property you have. If you hide your property or fail to list it, you could be accused of bankruptcy fraud. The court could deny your request to discharge all of your debts based on hidden assets.
When it comes to your assets, you should be open and honest in your bankruptcy. Do not fail to list any assets. Set up a consultation with a bankruptcy lawyer to determine what you need to include in your bankruptcy. He or she will ensure you do not harm your case in any way.