The majority of Chapter 7 bankruptcies in most jurisdictions end up being no-asset cases. This means that all the debtor’s assets are exempt. In such a case there are no assets for the trustee to administer and distribute to creditors. An exempt asset is an asset that can be removed from a debtor’s estate under [...]
Bankruptcy Exemptions
Laws, like sausages, cease to inspire respect in proportion as we know how they are made. John Godfrey Saxe, Daily Cleveland Herald (29 March 1869).[1] Previously, I have outlined the exemptions available to Virginia debtors in bankruptcy – property that a debtor gets to keep from the trustee. They are, to say the least, not [...]
A 32-year-old single mother of two filed for chapter 7 bankruptcy in Kansas and lost her $900 monthly lifetime annuity payment. This week she lost her attempt to protect the annuity from her creditors and the bankruptcy trustee. The chapter 7 bankruptcy trustee likely will sell the future stream of annuity payments for a lump [...]
The US Supreme Court plans to hear oral argument on several important bankruptcy cases in its 2009/10 term. One case, Milavetz Gallop v. U. S., deals with the relationship between bankruptcy lawyers and their clients. The case of U. S. Student Aid Funds v. Espinosa will determine what type of procedural steps must be taken [...]
Bankruptcy exemptions dicate what you’re allowed to keep when you file Chapter 7. You are entitled to keep property that is exempt, and you may be forced to give up any property that is not. Exempt property is property that is protected from creditors if you are sued and also if you file bankruptcy. Under [...]
