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Testimonials

Samuel- Woodland Hills, CA
My wages were being garnished, and I was getting sued by creditors. I could not pay my debts to credit card companies. Hamid Soleimanian filed a chapter 7 bankruptcy for me and stopped my wages from b...
Samuel- Woodland Hills, CA



Bankruptcy Lawyer

What Happens to the Property that is Turned Over to the Trustee?

What Happens to the Property that is Turned Over to the Trustee?When an individual files for bankruptcy protection, he or she is seeking a discharge of eligible debts and the financial fresh start permitted under the law. A debtor’s assets must be surrendered to the bankruptcy trustee during the proceedings. Both Chapter 7 and chapter 13 bankruptcy filings allow certain property to be exempted, or protected, from liquidation. If you are considering filing for personal bankruptcy, our bankruptcy attorney can help.

The bankruptcy trustee’s job is to collect your non-exempt assets, liquidate them, and use the proceeds to pay your creditors. Your secured debts are considered a priority, and any remaining funds will be used to pay unsecured debts. If you have specific property that you would like to keep, you may be able to buy them back from the trustee or re-affirm the debt.

Remaining property may then be sold at public auction, and any cash will be distributed to creditors with claims against your bankruptcy estate. The expense of your bankruptcy estate administration will be deducted from the proceeds of the auction. You and your family and friends, as well as members of the public, are eligible to bid at this auction. In some cases, the expense of liquidating an asset may outweigh any potential profit, and the trustee will abandon it, or return it to the debtor.

When you are considering filing for chapter 13 or chapter 7 bankruptcy, the advice of our seasoned Los Angeles bankruptcy lawyer can help you maximize your bankruptcy exemptions by choosing the set most beneficial for your situation.

Once the proper bankruptcy forms for your personal or business bankruptcy are completed, you will be on your way to a discharge of your debts and a new beginning free of burdensome debts. Contact our bankruptcy attorney in California today to learn more or to schedule your consultation.

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