Most of the people are concerned about the effects of bankruptcy on the property they owe. If you have been a resident of Florida for some time now, you will be allowed to keep the exempted property under Florida Law. A general view of the exemptions is as follows:
You might keep –
- Personal property worth $1000.
- Vehicle equity worth $1000.
- Either equity in homestead property or an additional property worth $4000.
Any other property, which does not come under exemptions, is solely left at the whim of the court-appointed trustee. The trustee takes the non-exempt property of the debtor and the auctions off those goods. Then these liquidation funds are utilized to pay the fees of the auctioneer, repossessing agent and the trustee (usually 25%). The leftover funds are paid to all those creditors of the debtor, who file the claims on time.
The trustee cannot claim an interest in the debtor’s property, simply because it is non-exempt. Sometimes, repossession and auctions are impractical. Liquidation of an asset should be determined on the likelihood of sale and analysis of cost benefits of the proceeds from the auction.
Although there is no specific amount to rely on for abandoning an asset, many trustees do not repossess the assets that earn less than $1000. Because of the subjective nature of such decisions, Trustees often agree to the debtor’s request for a cash settlement to keep the asset. Thus, there is no harm in trying.
Consult an experienced bankruptcy attorney to know more about keeping your non-exempt property with you in bankruptcy. Contact the Recovery Law Group at www.recoverylawgroup.com or call on 888-297-6203.