{"id":5746,"date":"2022-01-27T09:00:49","date_gmt":"2022-01-27T16:00:49","guid":{"rendered":"https:\/\/debtfreecolorado.com\/?p=5746"},"modified":"2022-02-09T12:49:41","modified_gmt":"2022-02-09T19:49:41","slug":"what-is-nonexempt-property-in-bankruptcy","status":"publish","type":"post","link":"https:\/\/debtfreecolorado.com\/what-is-nonexempt-property-in-bankruptcy\/","title":{"rendered":"What Is Nonexempt Property In Bankruptcy, And Why Does It Matter?"},"content":{"rendered":"

You’ve undoubtedly heard of bankruptcy. Some people swear they’ll never file bankruptcy, while others regularly use it as a tool. No matter which side you’re on, chances are you have heard of the term “non-exempt property.” But do you know what this is or why it matters? If not, it is time to read on and get some answers! Our <\/span>competent bankruptcy attorney<\/span><\/a> at Dray Legal can explain this in more detail.<\/span><\/p>\n

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Why do people file for bankruptcy?<\/strong><\/h2>\n

A bankruptcy filing is an option<\/a> for the majority of individuals who are already in financial difficulty long before they file.<\/span><\/p>\n

But why do so many people find themselves in financial trouble? One factor is the high cost of healthcare, which makes it more difficult for many Americans to pay their bills. Medical debt is the primary reason Americans declare bankruptcy. Another aspect is the increased accessibility of credit loans, which makes it simpler for Americans to end up spending more than they can afford.<\/span><\/p>\n

I’m sure other factors contribute to our nation’s high rate of personal bankruptcy, but I think these two are at the forefront.<\/span><\/p>\n

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Bankruptcy and Your Property<\/strong><\/h2>\n

When an individual is declared bankrupt, his or her property vests in (becomes the property of) the Trustee (a civil servant or insolvency practitioner). They then exercise control over the merchandise sold to satisfy creditors.<\/span><\/p>\n

All assets should be disclosed to the Trustee. What you can keep is entirely up to them. The Trustee seizes all non-exempt assets. They will sell them and use the revenues to pay for the bankruptcy’s fees<\/a>, charges, and expenditures before paying creditors. The Trustee confiscates your bank and savings accounts<\/a> when the bankruptcy order is issued. If the account is in credit, the amount is a bankruptcy asset<\/a>.<\/span><\/p>\n

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You Must Write Down All of Your Assets.<\/strong><\/h2>\n

Essentially, once you file for bankruptcy, you must disclose ALL of your assets.<\/span><\/p>\n

Among your assets are the following:<\/span><\/p>\n