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How you can keep more of your personal property when you file bankruptcy

by Dorota Trzeciecka on December 7th, 2010

You already know that you can keep some of your property when you file bankruptcy.    It is called exempt property.  But, what happens if there is a piece of property that is important to you, for either practical or sentimental reasons, be it a car, or a piece of art, or a musical instrument, and you have exhausted your limit on personal exemption?  You may be able to keep it, but, holding on to that property comes at a price.  Whether you are in Chapter 7 or Chapter 13, you will have to pay the bankruptcy Trustee the value of what he/she would have realized from the sale of such property in a Chapter 7 liquidation case, so as not to prejudice any of the creditors.  In other words, the Trustee will make you an offer and tell how much it will cost you to keep that piece of property.  The money to pay for it will come from your exempt property, assuming, of course, that you have exempt property to spare.

To learn more about keeping personal property in bankruptcy, please contact me  at (305) 439-0464, or e-mail me at dorota@debtor-creditorlaw.com.