What Happens to Non-Exempted Assets in Bankruptcy

If, after the meetings of creditors, the assigned bankruptcy trustee decides you have nonexempt property, you might be required to either give up those assets or provide the appointed trustee with its equivalent value in cash. If the property isn't worth very much or would be difficult for the appointed trustee to sell, the appointed trustee may "abandon" the property -- which means that you don't have to surrender it, even though it is nonexempt. Your bankruptcy attorney will advise you if this is the case.

Most property owned by our clients is either exempt or is essentially worthless for purposes of paying cash for the creditors. Therefore, few debtors end up having to handover any assets, unless it is collateral for a secured loan.

For information on our bankruptcy services or to speak with one of our Grand Rapids bankruptcy lawyers, feel free to give us a call at (616) 920-0555.

Stop Garnishments.

The moment you file for Bankruptcy, no matter what kind of Bankruptcy (Chapter 7, Chapter 11 or Chapter 13) you can stop garnishments immediately.  You will immediately obtain the Automatic Stay which prevents creditors from garnishing your accounts and paychecks.  You need to notify the creditor and perhaps the local court (In Grand Rapids, for example) of the Bankruptcy. It is even possible that you can exempt what was previously taken and receive a check back from your creditors after you file a Bankruptcy