<h2>A New Jersey lawyer Explains If Someone Appears At A Person’s House After Filing For Chapter 7 Bankruptcy Protection.</h2>
The chapter 7 bankruptcy code is created to allow a person a fresh start. In theory, the fresh start permits a person to keep property that is necessary to live. However, if a person has property that has substantial value, the New Jersey chapter 7 bankruptcy trustee may be permitted to sell such property. Substantial value represents the amount available after subtracting the creditor’s lien payoff, if any, and the bankruptcy exemptions, from the fair market value. The property that a debtor is able to keep is based on bankruptcy exemptions. A person may keep all property that is completely exempt. I explain, in detail, how exemptions are applied in a New Jersey chapter 7 bankruptcy case.
In a chapter 7 case in New Jersey, the debtor must list all of their assets on the petition. All personal property is an asset, including, but not limited to, all furniture, appliances, etc. In over 23 years of experience, I have never filed a personal consumer bankruptcy case, where the trustee came to a debtor’s house to inspect anything. However, it may be possible for a trustee to inspect personal and/or real estate that he believes has substantial value, as explained above. An example of a New Jersey bankruptcy filing where the trustee would inspect property, is a debtor that owed a valuable piece of art, painting or jewelry. However, under such circumstances, the debtor’s attorney should inform his client of the possible inspection, prior to the bankruptcy filing.
Some types of business bankruptcy cases are different than personal bankruptcy cases, in that the business assets are not exempt. This means that, it may be possible for the trustee to sell any business owned property for the benefit of the creditors, as the debtor may not be permitted to apply any exemptions against the equity value of any property. Please note that if the payoff amount due to a creditor, with a lien in property, is more than the value of the property, the the property has no value to the trustee. Consequently, the trustee would not sell such property. However, a trustee may be interested in inspecting any business property, under certain circumstances, with no liens attached to such property.
You may contact Robert Manchel at 866 503 5644 to discuss your NJ. bankruptcy law questions.