A Chapter 7 bankruptcy is also known as a straight bankruptcy or a liquidation plan. Under this plan you work with your lawyer at selling off your assets to pay back your creditors. In this scenario you won’t have enough money to pay back your debts completely, but the plan itself will qualify, once completed, as a means of dismissing you from paying your debt further.
Since this is a liquidation plan, you will be responsible for liquidating many of your assets. You will be able to keep some assets (your lawyer will help you sort through what you can keep). See the Chapter 7 exempt property blog for more details. In general you will be able to keep a car, some clothing, household items and furniture. In addition you will be able to keep tools required to perform your job and a limited amount of jewelry (including wedding bands) within a particular value. There are other examples of exempt property that you are able to keep, which your lawyer will be able to go into detail with you after reviewing your financial questionnaire. Other types of property will be considered “non-exempt,” which means you will need to give it up.
Common Examples of Non-Exempt Property:
- Second motor vehicle (car or truck)
- Motor vehicle of a high value
- Second home, including vacation homes
- Collections of monetary value such as coins, stamps, etc
- Family heirlooms that have monetary value
- Financials such as cash and bank accounts
- Investments such as stocks, bonds, CDs, mutual funds
If you have questions about what personal items that you can and cannot keep, you are not alone. People ask these types of questions to their bankruptcy lawyer all the time. Remember to be open and honest with your assets when you talk to your lawyer and he will help you protect as much personal property as you are allowed under the bankruptcy law.
Berry & Associates is a leading Atlanta bankruptcy law firm. They have 10 offices throughout metro Atlanta that help clients with Chapter 7 and Chapter 13 bankruptcy cases.







