A Chapter 7 “Asset Case”
Most Chapter 7 cases are "no-asset" ones. So, what's an "asset case," and is it good or bad for you?
When a Chapter 7 Trustee Doesn’t Liquidate Non-Exempt Property
Just because you own something that isn't exempt does not necessarily mean that your Chapter 7 trustee will liquidate it. Maybe not.
A “No Asset” Chapter 7 Case
Most individual consumer Chapter 7 cases are "no asset" ones. This means that the Chapter 7 trustee doesn't liquidate any debtor assets.
Proceeds, Rents, or Profits as “Property of the Estate”
Assets acquired after filing under Chapter 7, such as wages, can's be reached by the trustee. But watch out for proceeds, rents and profits.
“Property of the Estate” and Marital Property Division
The 180-day rule also applies to marital property division, whether by agreement or court decree.
“Property of the Estate” and “Death Benefits”
The 180-day rule applicable to life insurance proceeds also applies to death benefits overall. Death benefits may also often be exempt.
“Property of the Estate” Includes an Inheritance
If you are expecting an inheritance, or even if you are not, the special rules about them are worth your attention to prevent bad surprises.
“Property of the Estate” Excludes Property in a Spendthrift Trust
If you are the beneficiary in a spendthrift trust, most likely a bankruptcy trustee can't touch whatever property is in that trust.
“Property of the Estate” Excludes Powers You Exercise for Another’s Benefit
If you have a power of attorney over someone's assets, or any similar power, those assets are not affected by your bankruptcy case.
“Property of the Estate” in Chapter 7 Bankruptcy
To find out if you can keep everything you own in a Chapter 7 case, the first step is finding out what's in your bankruptcy estate.
5 Things to Know to Protect Your Property through Exemptions
Most of the time you get to keep everything you own when you file bankruptcy. It's all covered by property exemptions. But not always.
Understanding “Preferences”
Your trustee might be able to require a creditor to pay the trustee money you'd paid the creditor. Sometimes that's good; sometimes not.
Rents and Profits as Bankruptcy Assets
Beyond considering whether your assets have net value on the date of filing, do they generate rents, profits, or proceeds afterwards?