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Chapter 7 Liquidation Examples


shutterstock_1414267409-2A chapter 7 chapter is known as a liquidation chapter. It is because any property above what the chapter exemptions cowl should be liquidated or you’ll have to pay their worth to maintain them. Non-exempt property can occur in each Minnesota and Federal exemption circumstances. That being stated, they’re extra widespread in Minnesota exemption circumstances. Let’s take a look at a couple of examples:

Instance 1-Liquidation:
Your case was filed utilizing Minnesota exemptions. You personal a ship free and clear price $5,000. In Minnesota, there is no such thing as a exemption to guard property like boats. The $5,000 your boat is price would subsequently be property the trustee would both need to liquidate or you may selected to pay and hold it. When you selected to have the boat liquidated the trustee would have an auctioneer public sale off the non-exempt property, on this case a ship, and any proceeds acquired would go to pay the auctioneer’s charges, the trustee, and the remainder can be distributed to your collectors. 

Instance 2-Paying the Worth: 

Your case was filed utilizing Federal exemptions. You personal a ship free and clear price $20,000. The max federal wildcard exemption is $15,425. Let’s say you may apply this utterly towards your boat, in order that leaves $4,575 non-exempt. When you selected to pay to maintain this, you’ll have to pay $4,575 to the chapter property. Usually, chapter trustees will work out a cost plan- however you must communicate together with your lawyer about your particular case. 

Each case is totally different and your particular case could not have non-exempt property. It is very important communicate with a chapter lawyer about your scenario. 

CALL NOW FOR A FREE STRATEGY SESSION FROM A MN BANKRUPTCY LAWYER AT LIFEBACK LAW FIRM 

For any questions you will have relating to chapter 7 and liquidation or the rest chapter associated, go to www.lifebacklaw.com to talk with an lawyer right this moment. You may be glad you probably did!

 

 



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