In bankruptcy, liquidation is the process of converting your assets into cash to pay off the debts that you owe to your creditors. When an individual or couple files a Chapter 7 bankruptcy, their nonexempt assets become the property of the bankruptcy estate. The bankruptcy estate is overseen by a randomly assigned bankruptcy trustee, who earns a commission for liquidating your assets and then uses the leftover money to pay your creditors.
The Chapter 7 Bankruptcy Trustee
The judge presiding over your bankruptcy case supervises the bankruptcy trustee, although most trustees do not require much oversight. Liquidation can be a lucrative business with economic incentive, since the trustee makes a commission based on a percentage of the total amount of money they sell your property for. Trustees are also known to earn fees for legal services.
There Are No Nice Guys
Unfortunately, there are no emotions on the other end of your bankruptcy. It does not matter if you have worked hard for 20 years to keep your home or your car is your only way to get to work. The judge and the trustee over your case are bound by the laws of Chapter 7 Bankruptcy Code, so they cannot feel bad for you or your family, no matter what you will lose in the bankruptcy.
Fortunately, most individuals and couples who file Chapter 7 will not have to surrender any of their property. This is because some of them do not own anything that holds value for liquidation. Some have assets they have not paid off yet. Most of the people who file bankruptcy, though, only have assets that are exempt from the bankruptcy.
Filing bankruptcy can be scary, especially when you are thinking about the assets that you have to list in your bankruptcy schedule and the possibility of losing them. That is why you should consult with a competent and experienced bankruptcy attorney who can let you know which assets you can keep and which assets will need to be liquidated in your bankruptcy case.Are You Considering Filing For Bankruptcy? If you feel bankruptcy is the best option for your financial situation you need to speak with an experienced bankruptcy lawyer as soon as possible. Please contact us online or call our office directly at 888.348.2616 to schedule your free consultation.
Are You Considering Filing For Bankruptcy?
If you feel bankruptcy is the best option for your financial situation you need to speak with an experienced bankruptcy lawyer as soon as possible. Please contact us online or call our office directly at 888.348.2616 to schedule your free consultation.