Chapter 7 Bankruptcy & Liquidation: Your Property
If you choose to have a Chapter 7 bankruptcy lawyer help you with a bankruptcy petition, your lawyer will need you to provide some detailed financial information.
As a part of the bankruptcy filing process, your attorney will file several schedules of assets, income and debts.
The bright side is that a bankruptcy lawyer can determine how to use the data you provide, including figuring out what among your property is likely to be exempt from liquidation (a court-ordered sale to pay off debts).
You will likely be asked to provide the following information about your personal assets and the value of those assets:
- Cash
- Checking or savings account information, as well as certificates of deposit or annuities
- Household goods, including furniture, consumer electronics and computers and related equipment
- Deposits currently held by utility companies, landlords, etc.
- Valuable collectibles, including antiques, art, books, etc.
- Clothing
- Furs and jewelry
- Hobby equipment, including firearms, photographic apparatus, or other sporting equipment
- Interest in insurance policies
- Qualified educational or tuition accounts
- Stocks and other business interests
- Government or corporate bonds
- Moneys owed to you by other persons or entities, including tax refunds
- Alimony, maintenance, child support or property settlements that you are entitled to
- Interests in the estate of a decedent, life insurance or trust
- Patents, trademarks or copyrights that you hold
- Licenses and franchises that you hold
- If you run a business, customer lists
- All vehicles that you own, including trailers
- Boats and related accessories
- Aircraft and related accessories
- Office equipment, furniture and other supplies
- Machinery, fixtures and other equipment used in business
- Your business inventory
- Animals
- Crops, both those currently growing and those already harvested
- Farming equipment
Additional Personal Property
Your attorney will be able to assist you in determining which of the above property can be included on the schedule of claimed exemptions—items that are protected from liquidation.
It is important to remember that a significant aspect of your Chapter 7 bankruptcy will be a thorough examination of your property.
This examination does not necessarily mean that everything you own is at risk; in fact, much of it may be exempt from liquidation under bankruptcy law.
Your bankruptcy attorney can help you understand which Chapter 7 bankruptcy exemptions may apply to your case.
You should keep in mind, however, that part of the process involves a careful inventory of the above assets, your debts and other personal information including your employment history, creditor information and similar information related to your spouse (if you have co-mingled assets).
Preparing to disclose this information to your attorney can prevent surprises later in the process.