Liquidation of Assets
When you file for bankruptcy, you may be ordered by the bankruptcy judge to liquidate your assets in order to pay off your debts. This is most common with Chapter 7 bankruptcy, but may occur under other chapters, too. No matter the case, it is important to be knowledgeable during the liquidation process to make sure you are properly protected during the period of liquidation.
If you are currently going through a bankruptcy process that may require you to liquidate your assets, call the Boca Raton bankruptcy lawyers of Eric N. Klein & Associates at 561-353-2800 to discuss your rights.
What Gets Liquidated?
Liquidation is defined as the sale of the debtor’s nonexempt property. Nonexempt property typically refers to the property that is not considered essential for life, and thus may be sold. This includes:
- Most valuable items, such as musical instruments and valuable collections
- Family heirlooms
- Cash, bank accounts, stocks, bonds, and other investments
- All but one automobile
- All but one home
- Exempt property typically includes:
- One home
- One automobile
- Essential clothing
- Household appliances
- Personal injury damages
Exempt property usually goes to a liquidation sale, where it is sold and the proceeds are used to pay the debtor’s creditors. If you do not have any assets beyond exempt assets, there is a chance that of your assets will be liquidated.
Contact Us
Determining how to proceed in a bankruptcy case is tough, so it is important to hire an experienced bankruptcy lawyer. If you are going through a bankruptcy, contact the Boca Raton bankruptcy attorneys of Eric N. Klein & Associates at 561-353-2800 to learn more about filing your case.
