Filing for bankruptcy requires you to list all your assets and liabilities on your bankruptcy schedule. This is used to determine which of your assets can be exempted and can be kept by you during bankruptcy proceedings and which will be liquidated by the bankruptcy trustee to pay your creditors. To keep any property, you need to specify it in your bankruptcy schedule by providing the exemption provision you are using to protect it, say Los Angeles based bankruptcy law firm Recovery Law Group lawyers.
Many times, people are either unaware or forget what an asset is. This might cause problems later in their bankruptcy case. Some of the commonly overlooked assets which are often not included in bankruptcy schedule and as a result could lead to confiscation of asset by bankruptcy trustee include:
- Unpaid insurance claims
- Class action lawsuits
- Accumulated vacation pays
- Liquor license
- Season tickets
- Security deposits
A 341 hearing where debtor is asked about the assets and liabilities by the bankruptcy trustee is often when bankruptcy filers realise that there are other assets which might be in their name (joint property held by someone else). If the property has less equity, it won’t be a problem, however, if there is a lot of equity involved, it could affect your bankruptcy chapter. You might not be eligible for chapter 7 bankruptcy with all these additional incomes and assets.
Sometimes, people assume that certain things are assets whereas they aren’t. This can be in case of homes and cars. Whether they are an asset, or a liability depends on not their worth, but what you still owe on it. If the property is worth less than what you owe for it, it is not an asset for you but for the secured creditor. In such a case, the debtor should not use their exemption for maintaining the asset. To know which of your belongings are an asset and should be protected through exemption, you can consult with experienced bankruptcy lawyers by calling 888-297-6023.