Chapter 7 Assets

[okiebk09]

Can anyone tell me what they might consider an asset in Chapter 7? That is if I pass the means test. I know I am over the allowable income for my state but it is by about $4000. So I think I will still qualify. Anywho, If anyone can give me examples of assets that would be great.

[BassBoy]

An asset is anything you own that may have value, for example, a classic car, high end electronic equipment, jewelry........there are many items that are assets. What the value of that asset is can vary.

[okiebk09]

So will they come and get your furniture? TV? Washer and Dryer? I mean how do they determine what you do and do not have? Some of our furniture was given to us, some we bought when we bought our house and paid cash for, some we bought about 20 months ago and did 90 days same as cash and paid it off completely. So I gues sthey can come get anything you have? What about jewlery that was a family passdown from a grandparent? Can they take that? Ijust do not get how they can take things that you have paid for. I might understand thigs bought on credit and not apid for but what about things that you rightfully bought that mean something or have nothing to do with your creditors?

[journey]

Well i had the same questions. But from what i understand dont matter if you paid for it.The reson for them wanting it is to sell and pay the Creditors back some of there lose's. hope this helps.

[Phillymanhere]

Take your time and read through old threads here. No one is going to take your tv. You're allowed to have necessary items. That's the whole point of bankruptcy, to allow people to not to have to surrender their bed and phone and sofa, etc.

You'll need to learn the law as it applies in your state. Different states have different categories of exemptions--assets up to a certain amount that can sometimes be protected.

The reason they can come and "take" things (remember, they only are interested in high value items) is because we "owe" money to other people, and if the court is going to break the legal agreement we have to repay a debt owed by law to another entity, then the court has the right to make sure we aren't holding on to assets that we could easily sell to pay off the debts.

It's perfectly reasonable. Otherwise, I could hold on to all kinds of items. All of my items would be family "heirlooms," including all my cash accounts, my stock accounts, the house I inherited. The courts want to be sure we really can't pay off the debts. If we have some high value asset that we simply don't want to sell, then that's a situation where the courts would say we simply don't want to pay off the creditor.

Having said that, you need to talk to a lawyer, because a lot of people are able to save wedding rings, etc. But it depends on your state and the bankruptcy law and practice in your particular state.

[keepmine]

There are 2 classes of assets. Exempt and non exempt.
Exempt assets are things like, the equity in your home or car that your state allows you to keep. ERISA qualifed retirement accounts,etc.
Non exempt assets are things that may be over the exemption level or, things like collectables, tax refunds etc. You need to find out what your specific state exemptons allow and plan accordingly.