{"id":36791,"date":"2022-01-25T09:00:22","date_gmt":"2022-01-25T17:00:22","guid":{"rendered":"https:\/\/pdxlegal.com\/?p=36791"},"modified":"2022-02-09T13:59:14","modified_gmt":"2022-02-09T21:59:14","slug":"nonexempt-property-in-bankruptcy","status":"publish","type":"post","link":"https:\/\/pdxlegal.com\/nonexempt-property-in-bankruptcy\/","title":{"rendered":"Nonexempt Property in Bankruptcy: What You Need to Know"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">Oftentimes when we hear the word \u201cbankruptcy\u201d, our minds conjure up this image of losing money, being broke, selling all our properties, and having some valuables from our homes seized by creditors. Nobody wants to be in this kind of situation as it is seen as a financial tragedy. However, there is always room for light in all of this. We should view bankruptcy through positive lens as a fresh start, a means for change, and a chance to get back on our feet.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">How are your properties affected in a <a href=\"\/celebrity-bankruptcy-filings\/\">bankruptcy filing?<\/a>. There is nonexempt property in bankruptcy and there is exempt property. Everything is pretty much self-explanatory as exempt properties in bankruptcy are items that you have declared as exempted and considered untouchable during the bankruptcy proceedings. Nonexempt property, on the other hand, is the opposite. These are the properties that will be disposed off to pay off your debts.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Dealing with bankruptcy doesn\u2019t have to be a losing game. Understanding the procedures can help you get your life back on track. Bankruptcy can be a chance for you to reevaluate your life and start anew. Making the distinction between properties to keep and properties to sell can help make facing bankruptcy easier.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">If you\u2019re facing bankruptcy issues, know that you don\u2019t have to go through it alone. Enlist the help of a <\/span><a href=\"https:\/\/pdxlegal.com\/\"><span style=\"font-weight: 400;\">Portland, Oregon bankruptcy attorney<\/span><\/a><span style=\"font-weight: 400;\"> to help you through every step of the way. While the entire bankruptcy process may be complicated, an attorney\u2019s legal expertise can be your guiding light to achieving the desired outcome.\u00a0<\/span><\/p>\n<p>&nbsp;<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Exempt_Property_vs_Nonexempt_Property_in_Bankruptcy\"><\/span><strong>Exempt Property vs. 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-6629dcf0bce9d\" 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-6629dcf0bce9d\"  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:\/\/pdxlegal.com\/nonexempt-property-in-bankruptcy\/#Exempt_Property_vs_Nonexempt_Property_in_Bankruptcy\" title=\"Exempt Property vs. Nonexempt Property in Bankruptcy\">Exempt Property vs. 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:\/\/pdxlegal.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:\/\/pdxlegal.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:\/\/pdxlegal.com\/nonexempt-property-in-bankruptcy\/#Seek_Legal_Help\" title=\"Seek Legal Help\">Seek Legal Help<\/a><\/li><\/ul><\/nav><\/div>\n\n<p><span style=\"font-weight: 400;\">Differentiating the two kinds of property you\u2019ll be dealing with in bankruptcy is the first step. As previously mentioned, there is exempt and nonexempt property in bankruptcy. Exemptions have quite a role in both <a href=\"\/what-does-it-mean-to-declare-bankruptcy-chapter-13\/\">chapter 7 and chapter 13 bankruptcies<\/a>. Exemptions determine which property you keep or which property you\u2019ll pay to your creditors, depending on the type of bankruptcy you file.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Exemptions help you determine what assets you\u2019ll be keeping in a bankruptcy. These assets are usually on the essential side, such as cars, clothing, tools you need for work, and retirement accounts. In short, these are things that you\u2019ll need to continue surviving, basic necessities to say the least. Exemptions are geared towards protecting property up to a certain dollar value. Depending on the state you\u2019re in, examples of other items that can be exempted are jewelry, pets, and collectibles.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Nonexempt property, on the other hand, is property that isn\u2019t declared or protected in a bankruptcy. These are the items that will be sold, proceeds of which will be used to help you rebuild your life by paying for living expenses. There is a list of exempted property, depending on your state, and nonexempt properties are those that don\u2019t reflect on the list.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Get in touch with a bankruptcy lawyer whenever faced with bankruptcy terms. A <\/span><a href=\"https:\/\/pdxlegal.com\/bankruptcy\/\"><span style=\"font-weight: 400;\">seasoned bankruptcy lawyer<\/span><\/a><span style=\"font-weight: 400;\"> can explain the situation in terms that you can easily understand.<\/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;\">Most individuals file for chapter 7 bankruptcy since it is quicker and a lot simpler to file. <\/span><a href=\"https:\/\/pdxlegal.com\/chapter-7\/\"><span style=\"font-weight: 400;\">Chapter 7 bankruptcy<\/span><\/a><span style=\"font-weight: 400;\"> requires no debt to pay back and one becomes eligible for this if their gross income is lower than the state\u2019s median income. An individual can also <a href=\"\/chapter-7-cost-of-filing-bankruptcy-in-the-portland-metro-area\/\">file for this if they don\u2019t have a bankruptcy discharge<\/a> in the last six to eight years. The entire process of <a href=\"\/chapter-7-cost-of-filing-bankruptcy-in-the-portland-metro-area\/\">filing this kind of bankruptcy<\/a> takes about four to six months.\u00a0\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Chapter 7 bankruptcy has an \u2018automatic stay\u201d system which prevents creditors from any collection activities.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Nonexempt property in bankruptcy of this kind will be sold to the trustee to earn money. The proceeds should help the debtor pay for their living expenses, with priority debts usually paid out first. Priority debts include taxes and child support.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">For <a href=\"\/bankruptcy\/exemptions\/\">exempt property in chapter 7 bankruptcy<\/a>, these would usually depend on the type of property you have and how much it is worth. In a chapter 7 bankruptcy, your creditors cannot\u00a0 sell these to pay your creditors and how much you get to keep depends on asset value and claimed exemptions. Typically, most filers keep almost all their properties in chapter 7 bankruptcies.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Consult with a Portland, Oregon bankruptcy attorney to help straighten out any confusion and doubt you may have regarding chapter 7 bankruptcies. Determine what kinds of property can and cannot be exempted. Knowing important terms is the first step to getting your life back on track.\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 who have a significant amount of income would benefit from filing for chapter 13 bankruptcy in order to protect their assets. In order to become eligible for chapter 13 bankruptcy, the filer must not have a high <a href=\"\/bankruptcy\/secured-vs-unsecured-debt\/\">debt for both secure and unsecured types<\/a>. Filers with debts that are too high would be asked to <a href=\"\/chapter-11\/\">file for chapter 11 bankruptcy<\/a> instead. Individuals with a high and steady income but aren\u2019t business owners are recommended to <a href=\"\/chapter-13\/\">file for chapter 13 bankruptcy<\/a>.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Nonexempt property in bankruptcy of this sort means that the trustees won\u2019t sell all your properties but you would have to pay an amount that is equal to the properties you\u2019ve exempted.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Chapter 13 bankruptcy has a repayment plan whose amount depends on your income, monthly living expenses, property owned, and amount of debt. You first have to determine your disposable income followed by the nonexempt asset value and pay this amount to your creditors in the repayment plan. The final step is determining which debts to pay off including <a href=\"\/mortgage-accounting-explained\/\">mortgages<\/a> and car payments.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">If you don\u2019t have that many nonexempt properties in bankruptcy, you might find drafting a confirmable plan easy. You can consult an experienced bankruptcy lawyer regarding chapter 7 and 13 bankruptcies so you can get more information.\u00a0<\/span><\/p>\n<p>&nbsp;<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Seek_Legal_Help\"><\/span><strong>Seek Legal Help<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Figuring out bankruptcy terms can be quite complicated for anyone who isn\u2019t well-versed in this area. When dealing with bankruptcy and other financial struggles, enlist the help of Michael D. O\u2019Brien &amp; Associates, P.C., by contacting <strong><a href=\"tel:5036944445\">(503) 694-4445<\/a><\/strong>. The chapter 7 and chapter 13 bankruptcy lawyers can walk you through the entire process and help you come out of bankruptcy on the way to regain control over your life. <\/span><a href=\"https:\/\/pdxlegal.com\/contact\/\"><span style=\"font-weight: 400;\">Schedule an appointment<\/span><\/a><span style=\"font-weight: 400;\"> with Michael D. O\u2019Brien &amp; Associates, P.C., now.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Oftentimes when we hear the word \u201cbankruptcy\u201d, our minds conjure up this image of losing money, being broke, selling all our properties, and having some valuables from our homes seized by creditors. Nobody wants to be in this kind of situation as it is seen as a financial tragedy. However, there is always room for [&hellip;]<\/p>\n","protected":false},"author":6,"featured_media":36792,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3],"tags":[],"_links":{"self":[{"href":"https:\/\/pdxlegal.com\/wp-json\/wp\/v2\/posts\/36791"}],"collection":[{"href":"https:\/\/pdxlegal.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/pdxlegal.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/pdxlegal.com\/wp-json\/wp\/v2\/users\/6"}],"replies":[{"embeddable":true,"href":"https:\/\/pdxlegal.com\/wp-json\/wp\/v2\/comments?post=36791"}],"version-history":[{"count":2,"href":"https:\/\/pdxlegal.com\/wp-json\/wp\/v2\/posts\/36791\/revisions"}],"predecessor-version":[{"id":36794,"href":"https:\/\/pdxlegal.com\/wp-json\/wp\/v2\/posts\/36791\/revisions\/36794"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/pdxlegal.com\/wp-json\/wp\/v2\/media\/36792"}],"wp:attachment":[{"href":"https:\/\/pdxlegal.com\/wp-json\/wp\/v2\/media?parent=36791"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/pdxlegal.com\/wp-json\/wp\/v2\/categories?post=36791"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/pdxlegal.com\/wp-json\/wp\/v2\/tags?post=36791"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}