{"id":3932,"date":"2022-01-27T09:00:38","date_gmt":"2022-01-27T09:00:38","guid":{"rendered":"https:\/\/phoenixfreshstartbankruptcy.com\/?p=3932"},"modified":"2022-04-29T07:43:01","modified_gmt":"2022-04-29T07:43:01","slug":"nonexempt-property-in-bankruptcy","status":"publish","type":"post","link":"https:\/\/phoenixfreshstartbankruptcy.com\/nonexempt-property-in-bankruptcy\/","title":{"rendered":"Nonexempt Property in Bankruptcy: All You Need to Know"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">Nobody likes the thought of <a href=\"\/chapter-7-bankruptcy-declaration-and-divorce\/\">declaring bankruptcy<\/a>. Just the mere image of us experiencing financial difficulties and having to resort to selling our most prized possessions while others are taken away by creditors is enough to incite fear in most of us. Bankruptcy is one such situation nobody wants to find themselves in. And for good reason.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">While most of what is mentioned above is true, it doesn\u2019t happen instantaneously. Bankruptcy is a complex situation where there are plenty of ins and outs and certain conditions where you still do something about. Contrary to what you might be thinking,\u00a0 you can still save some of your property and sell some of it to help you stay afloat in the midst of a financial crisis.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">This is where knowing the difference between exempt and nonexempt property comes into play. Exempt property, from the word itself, is property that creditors cannot and will not sell as these items are essential for your daily living and profession. Nonexempt property in bankruptcy, on the other hand, refers to items that are for leisure or luxury, things that you don\u2019t really need in order to live and you can definitely do without. These are the items that will be sold.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">You don\u2019t have to go through the entire ordeal of bankruptcy alone. From selling nonexempt property to paying off creditors, a <a href=\"\/how-do-i-get-the-bankruptcy-attorney-that-is-right-for-me\/\">bankruptcy attorney<\/a> can help you navigate it all. Seek the legal assistance of a<\/span><a href=\"https:\/\/phoenixfreshstartbankruptcy.com\/\"><span style=\"font-weight: 400;\"> Phoenix, Arizona bankruptcy attorney<\/span><\/a><span style=\"font-weight: 400;\"> to help you solve complicated bankruptcy concerns.\u00a0<\/span><\/p>\n<p>&nbsp;<\/p>\n<h2><span class=\"ez-toc-section\" id=\"What_is_Nonexempt_Property_in_Bankruptcy\"><\/span><strong>What is Nonexempt Property in Bankruptcy?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2><div id=\"ez-toc-container\" class=\"ez-toc-v2_0_65 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<label for=\"ez-toc-cssicon-toggle-item-662d09151466e\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-662d09151466e\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/phoenixfreshstartbankruptcy.com\/nonexempt-property-in-bankruptcy\/#What_is_Nonexempt_Property_in_Bankruptcy\" title=\"What is Nonexempt Property in Bankruptcy?\">What is Nonexempt Property in Bankruptcy?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/phoenixfreshstartbankruptcy.com\/nonexempt-property-in-bankruptcy\/#Nonexempt_Property_in_Chapter_7_Bankruptcies\" title=\"Nonexempt Property in Chapter 7 Bankruptcies\">Nonexempt Property in Chapter 7 Bankruptcies<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/phoenixfreshstartbankruptcy.com\/nonexempt-property-in-bankruptcy\/#Nonexempt_Property_in_Chapter_13_Bankruptcy\" title=\"Nonexempt Property in Chapter 13 Bankruptcy\">Nonexempt Property in Chapter 13 Bankruptcy<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/phoenixfreshstartbankruptcy.com\/nonexempt-property-in-bankruptcy\/#Seek_Legal_Advice\" title=\"Seek Legal Advice\">Seek Legal Advice<\/a><\/li><\/ul><\/nav><\/div>\n\n<p><span style=\"font-weight: 400;\">In bankruptcy, people sell off some of their items in order to help them make ends meet or to get back on their feet. These items are called nonexempt property. Nonexempt property are assets that aren\u2019t protected in bankruptcy and do not appear on an exemption list.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">While it\u2019s more obvious that exempt properties are those you need for everyday living such as a home, car, and professional equipment or stuff you need for work; nonexempt property in bankruptcy pertains to items that are usually leisurely in nature, things that you might have valued but aren\u2019t really essential to living. Examples of these include memorabilia, family heirlooms, and vacation houses.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">When dealing with nonexempt properties in bankruptcy, it is always best to be sure. Consult a Phoenix bankruptcy lawyer to get expert opinion on the next best step to take when facing bankruptcy.\u00a0<\/span><\/p>\n<p>&nbsp;<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Nonexempt_Property_in_Chapter_7_Bankruptcies\"><\/span><strong>Nonexempt Property in Chapter 7 Bankruptcies<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">We all know that there are chapter 7 and chapter 13 bankruptcies and what happens to your possessions depends on the kind of bankruptcy you file for. Chapter 7 is the more typically filed kind of bankruptcy since its requirements are pretty attainable. To <a href=\"\/5-advantages-and-disadvantages-of-filing-bankruptcy-chapter-7\/\">file for chapter 7 bankruptcy<\/a>, an individual only has to have income that isn\u2019t higher than the state median income. They must also not have any <a href=\"\/what-happens-with-a-bankruptcy-discharge\/\">bankruptcy discharge<\/a> in the last six to eight years.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Processing <\/span><a href=\"https:\/\/phoenixfreshstartbankruptcy.com\/chapter-7\/\"><span style=\"font-weight: 400;\">chapter 7 bankruptcy<\/span><\/a><span style=\"font-weight: 400;\"> can take quite some time, roughly around four to six months with a fee of around $338. Nonexempt property in <a href=\"\/bankruptcy-chapter-7-and-13-in-arizona\/\">chapter 7 bankruptcy<\/a> calls for a bankruptcy trustee to handle the estate. This court-appointed official will be in charge of selling your items with the generated profit used to pay off creditors. Important bills known as priority debts like <a href=\"\/child-support-and-bankruptcy-in-phoenix\/\">child support<\/a> are usually the first to be paid off. If you aren\u2019t supporting any children, the money will then go to loans and <a href=\"\/what-happens-to-credit-card-debts-in-a-bankruptcy-case\/\">credit card<\/a> bills.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In <a href=\"\/bankruptcy-chapter-7-and-13-arizona\/\">chapter 7 bankruptcy<\/a>, there are certain conditions you need to follow for nonexempt properties. While you might want to think that there are ways to save some nonexempt properties, you must still keep the guidelines in mind. One of the reasons why we can save nonexempt properties in a bankruptcy filing include the trustee abandoning the estate, which typically happens when the trustee sees that there isn\u2019t much value in the items being sold. Should the filer want some of the nonexempt properties back, they can either repurchase it from the trustee or swap it.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">When a trustee abandons nonexempt property in bankruptcy, they file for a Notice of Abandonment which notifies creditors telling them not to liquidate the said properties. Through this agreement, the trustee returns control of properties to the debtor and creditors who are interested in the property.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">After abandonment, the debtor\u2019s properties are released from bankruptcy and they now have complete control. They can either surrender the property, redeem it by paying the creditor it\u2019s amount, sign a new contract, or keep the property.\u00a0<\/span><\/p>\n<p>&nbsp;<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Nonexempt_Property_in_Chapter_13_Bankruptcy\"><\/span><strong>Nonexempt Property in Chapter 13 Bankruptcy<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Individuals with a higher income are encouraged to <a href=\"\/10-steps-to-file-bankruptcy-chapter-13\/\">file for chapter 13 bankruptcy<\/a>. <\/span><a href=\"https:\/\/phoenixfreshstartbankruptcy.com\/chapter-13\/\"><span style=\"font-weight: 400;\">Chapter 13 bankruptcy<\/span><\/a><span style=\"font-weight: 400;\"> requires a certain eligibility apart from having substantial income. One is that your secured and unsecured debt do not increase the designated limit. The filer must also prove that they are capable of paying the repayment plan. <a href=\"\/small-business-bankruptcy\/\">Chapter 13 bankruptcy is not applicable to businesses<\/a>.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Nonexempt property in bankruptcy sees the trustee not selling the properties, rather the filer would pay the asset\u2019s amount to the unsecured creditors via the repayment plan. Nonexempt property in bankruptcy is found to have been able to increase the chapter 13 plan payment. This means that while you get to keep nonexempt properties, the repayment plan might cause you to pay your creditors a higher dividend.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The bankruptcy process can be tough to navigate regardless of its type. If you\u2019re dealing with <a href=\"\/how-to-file-for-bankruptcy-chapter-13-with-an-attorney\/\">chapter 13 bankruptcy<\/a> and are in need of assistance, it is best to seek the legal counsel of attorneys well-versed in the area of bankruptcy to help you set your sights on getting back on track.\u00a0<\/span><\/p>\n<p>&nbsp;<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Seek_Legal_Advice\"><\/span><strong>Seek Legal Advice<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Regardless of the <a href=\"\/personal-bankruptcy-types-explained\/\">type of bankruptcy<\/a> you\u2019re dealing with, it\u2019s always tough to navigate it on your own. Enlist the help of <\/span><a href=\"https:\/\/phoenixfreshstartbankruptcy.com\/contact\/\"><span style=\"font-weight: 400;\">experienced bankruptcy lawyers<\/span><\/a><span style=\"font-weight: 400;\"> at Phoenix Fresh Start Bankruptcy Attorneys by contacting (602)598-5075 to smoothen out any worries involving bankruptcy. The attorneys will explain everything to you from the basics to the specifics in order to help you conquer this financial burden and start taking control over your life.\u00a0<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Nobody likes the thought of declaring bankruptcy. Just the mere image of us experiencing financial difficulties and having to resort to selling our most prized possessions while others are taken away by creditors is enough to incite fear in most of us. Bankruptcy is one such situation nobody wants to find themselves in. And for good reason.\u00a0 While most of what is mentioned above is true, it doesn\u2019t happen instantaneously. Bankruptcy is a complex situation where there are plenty of [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":3933,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[35],"tags":[],"_links":{"self":[{"href":"https:\/\/phoenixfreshstartbankruptcy.com\/wp-json\/wp\/v2\/posts\/3932"}],"collection":[{"href":"https:\/\/phoenixfreshstartbankruptcy.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/phoenixfreshstartbankruptcy.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/phoenixfreshstartbankruptcy.com\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/phoenixfreshstartbankruptcy.com\/wp-json\/wp\/v2\/comments?post=3932"}],"version-history":[{"count":2,"href":"https:\/\/phoenixfreshstartbankruptcy.com\/wp-json\/wp\/v2\/posts\/3932\/revisions"}],"predecessor-version":[{"id":3935,"href":"https:\/\/phoenixfreshstartbankruptcy.com\/wp-json\/wp\/v2\/posts\/3932\/revisions\/3935"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/phoenixfreshstartbankruptcy.com\/wp-json\/wp\/v2\/media\/3933"}],"wp:attachment":[{"href":"https:\/\/phoenixfreshstartbankruptcy.com\/wp-json\/wp\/v2\/media?parent=3932"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/phoenixfreshstartbankruptcy.com\/wp-json\/wp\/v2\/categories?post=3932"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/phoenixfreshstartbankruptcy.com\/wp-json\/wp\/v2\/tags?post=3932"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}