Chp 13 to 7

[mb5941]

Hello everyone, I've justed filled a chp 13 but I'm
thinkin I might have to go to a 7. My question is will they sell my unsecured assets first & if this gets close to paying off my debt can I do anything to stop further sells and pay the rest some other way.

[phoenyx]

Hello everyone, I've justed filled a chp 13 but I'm
thinkin I might have to go to a 7. My question is will they sell my unsecured assets first & if this gets close to paying off my debt can I do anything to stop further sells and pay the rest some other way.

In a Chapter 7 bankruptcy, the Trustee has the right to seize and sell your unsecured assets -- if they may not be claimed as exempt property.

Each state has laws creating categories of assets, and defining a value that each person can have in those categories to be exempt. These are referred to as exemptions. That way, they don't completely strip away everything that someone owns. Someone can have a car, because it's pretty necessary in today's world, but if it's a very expensive car that has equity in it, beyond the exempted amount, they could say that's excessive and seize it to sell it.

Anything that is not able to be considered exempt can be seized by the Trustee, if they feel like doing so. They typically only go after things that they would get some money out of. They typically won't go after used things that would sell at a garage sale very cheaply -- it's not worth their time. They aren't interested in picking through your household goods, furniture, books, etc -- unless there is something extraordinary in there.

In the end though, is the resale value of your unsecured assets high enough to make a huge dent in your debt? Unless you have some things worth a lot (again as used, valued at what they can get for it at auction) I'd be suprised if you did.


A bankruptcy attorney could advise you much better, since most posters on this board aren't lawyers, and we don't know all your specifics. Did you file with an attorney, or file yourself? Most bankruptcy attorneys will even do their initial consultations for free.

[lovescats1956]

Hello everyone, I've justed filled a chp 13 but I'm
thinkin I might have to go to a 7. My question is will they sell my unsecured assets first & if this gets close to paying off my debt can I do anything to stop further sells and pay the rest some other way.

I would talk to your attorney. I just converted from 13 to 7 and my attorney didn't say anything about selling unsecured assets. Frankly, I don't have any assets worth selling and little money (which is why I had to convert to a 7). But still, talk to your attorney.