If you are required to turn your property over to the bankruptcy trustee, it is usually sold and converted to cash. This is used to pay the fees and expenses of the trustee, to pay the claims of priority creditors, and, if there is any left, to pay the claims of unsecured creditors.
Property that is commonly required to be turned over to the trustee often includes:
- Second vehicles
- Vacation or second homes
- Valuable family heirlooms
- Collections of stamps, coins, jewelry, or other valuables
Although the thought of turning your property over to the bankruptcy trustee may be distressing, it's important to remember that there are a number of exemptions designed to protect your property. Some examples of exemptions include:
- Vehicles with modest equity
- A portion of the equity in your primary residence
- Reasonably necessary clothing
- Reasonably necessary household goods and furnishings
- Tools of the trade, up to a certain value
Depending upon the size of your debts and the value of your belongings, it's possible that you may be allowed to keep the majority of your personal property.
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The legal team at Steffens Law Office is committed to helping Nebraska residents use bankruptcy to get a fresh financial start. Contact us today to schedule a case review.