In a Chapter 7 case, the person filing is required to turn over to the trustee only the nonexempt money or property that he or she possessed at the time the case was filed. This means that many of your assets can be protected with proper planning.
Minimizing Your Nonexempt Assets
Many nonexempt assets are liquid in nature and tend to vary in size or amount from day to day. It is wise, therefore, to engage in some estate planning so as to minimize the value or amount of these liquid assets on the day and hour that the Chapter 7 case is filed.
The most common nonexempt liquid assets, and the assets that the trustee will be most likely to look for, include the following:
- Bank accounts
- Prepaid rent
- Landlord and utility deposits
- Accrued earnings and benefits
- Tax refunds
- Sporting goods
It is usually advantageous to take steps to ensure that the value of each of these assets is as low as possible on the day and hour that the Chapter 7 case is filed. By doing this the person will not be cheating or acting illegally; he or she will simply be using the law to his or her advantage, much the same as a person who takes advantage of the tax laws by selling property at the appropriate time.
How We Can Help
At Steffens Law Office, we are dedicated to helping Nebraska residents use Chapter 7 filings to obtain relief from unmanageable debt burdens. Contact us today to schedule a case review to discuss your options and how to minimize the amount of money and property you will need to turn over to the bankruptcy trustee.