What happens to my assets during a Chapter 11 bankruptcy?

In Florida, during a Chapter 11 bankruptcy, your assets are taken away from you and put into a trust of sorts called the estate. This estate, which is managed by a court-appointed trustee, consists of all of your assets including any real estate and personal property, such as cars and furniture. The trustee will then review all of your assets, and determine the best way to dispose of them so that your creditors can be paid back as much as possible. This could mean liquidating assets and using the money to pay the creditors, or reorganizing debts through a negotiated settlement. During the process, the trustee may also be able to exempt certain assets, such as property that is necessary for the maintenance of yourself and your family. However, it will be up to the trustee to decide how much of your assets can be exempt and what needs to be liquidated. Overall, during a Chapter 11 bankruptcy you may lose some of your assets, but the goal is to ultimately provide you with financial relief and a restructuring of your debts so that you can become financially stable.

Related FAQs

What happens to my assets during a Chapter 11 bankruptcy?

Related FAQs

Related Blog Posts