Are there any assets that I will be required to sell when filing for bankruptcy?

When filing for bankruptcy in California, assets are examined to determine if they must be sold to pay off debts. Generally, any assets that you are not allowed to keep in bankruptcy are sold off to generate money to pay your creditors. Your home, cars, boats, bank accounts, personal property, and investments are all potential assets that may have to be sold when filing. Any assets that are not considered exempt from bankruptcy, which are assets with a certain amount of value that the debtor is allowed to keep, must be sold off to generate funds to pay off creditors. In most cases, assets that are needed to support the debtor and their family are exempt. These include tools of the trade, needed household goods, and certain pieces of property. For example, California law allows debtors to exempt $175,000 of equity in their household and vehicles up to $3,550 in value. Ultimately, all assets and liabilities must be disclosed when filing for bankruptcy, and the court will decide which assets must be sold off. Different types of bankruptcy have different exemptions, so it’s important to talk to a lawyer about your situation before making any decisions.

Related FAQs

Can I keep certain types of tax debts when filing for bankruptcy?
How does the bankruptcy court decide which creditors will get paid?
What are the differences between filing for Chapter 7 and Chapter 13 bankruptcy?
Do I have to pay taxes on any discharged debt?
What is the difference between a voluntary and involuntary bankruptcy filing?
Does filing for bankruptcy stop foreclosure proceedings?
Are there additional filing fees associated with filing for bankruptcy?
What are some alternatives to filing for bankruptcy?
Are there any types of debt that will survive a bankruptcy discharge?
What are some of the potential pitfalls to filing for bankruptcy?

Are there any assets that I will be required to sell when filing for bankruptcy?

Related FAQs

Related Blog Posts