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“ Craig D. Robins, Esq., has been a practicing Long Island bankruptcy attorney for over twenty-four years ”
Written by Craig D. Robins, Esq.If a trustee in a Chapter 7 case comes across a significant asset that is not exempt, the trustee will first solicit an offer from the debtor. If the debtor is interested in keeping the asset, then the debtor will negotiate to purchase the debtor’s interest.
What happens if the debtor is not interested or can’t afford to purchase the asset? Then the trustee will try to sell it.
In order to do so, the Chapter 7 trustee must give notice to all creditors and interested parties listed in the petition.
The trustee can then determine how the asset will be sold. It can be through a broker or an auctioneer. The trustee can also publish a notice indicating that the sale will be in his office, or that the item will be sold to the highest bid received by a certain date.
In order for the trustee to accept a bid, even if the only party making the offer is the debtor, the trustee must seek bankruptcy court approval. In some instances, the trustee will structure the sale so that it is subject to a higher or better offer.
Once the trustee sells the asset, then he has good amount of paperwork to do.
You may be interested in a related post I wrote: How Much Do Chapter 7 Bankruptcy Trustees Get Paid?
What are typical assets that a Chapter 7 trustee may sell? These can be cars, jewelry, collectibles, homes, and even baseball tickets.
However, a good experienced Chapter 7 bankruptcy attorney will properly guide the client to make sure that there are no unprotected assets. Also, Sometimes Debtors Can Keep Non-Exempt Assets in Chapter 7 Bankruptcy Cases .
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For those considering filing bankruptcy in New York, here is a list of the most common Bankruptcy Exemptions in New York .
