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cfortunato, Attorney
Category: Bankruptcy Law
Satisfied Customers: 8023
Experience:  Bankruptcy professor.
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When filing for chapter 7, what does the court generally consider

Resolved Question:

When filing for chapter 7, what does the court generally consider assets? I have items of value (guns, computer equipment, electronics, etc.), but am not sure if I have to give them up?
Submitted: 5 years ago.
Category: Bankruptcy Law
Expert:  cfortunato replied 5 years ago.

Hi JACustomer,

In general, assets are all real and personal property a debtor owns that can be sold. There is a list of property that is exempt (protected) from the Bankruptcy estate, which you can see here:

and here:

Anything not on this list can be taken by the Bankrutpcy court. However, the debtor is usually given the option to pay - over a period of time - the value of the assets to be allowed to keep them. The value is the price those items could realistically sell for in a yard sale, not what was paid for them.


I think this is what you wanted to know. If not, please let me know.
Thank you!

Customer: replied 5 years ago.
So is there a minimum value to any given item that they will not even consider (ex: 200 dollar lcd monitor?)
Expert:  cfortunato replied 5 years ago.

That is up to the Bankruptcy trustee, who gets 10% of the value of all assets that he gathers and sells - and each trustee is different.

However, in general, you can expect to be able to keep anything that has a value of less than $50 - $100, because it would not be worth it for the trustee to spend time gathering and selling assets for less than that amount. Some trustees sell assets online, and some have auctions.

Customer: replied 5 years ago.
I guess my only real concern is that I need a computer for my work, and mine is more than 200 dollars, but its all I have. Will they likely take that if its needed for my income?
Expert:  cfortunato replied 5 years ago.

Anything that you need for work - including a computer - is covered under "Tools of Your Trade", for which there is a $3,500 Bankruptcy exemption. This means you can keep your computer (as long as it cannot be sold for at least $3,500).


Please don't forget to hit the "ACCEPT" button.

Thank you!

cfortunato and 3 other Bankruptcy Law Specialists are ready to help you
Customer: replied 5 years ago.
I also just started a new job, will that affect anything. Will they be able to take my first paycheck or subsequent amounts of my pay?
Expert:  cfortunato replied 5 years ago.

Thank you for accepting my answer! And thank you for the bonus!

The Bankruptcy court cannot take your wages going forward - after the Bankruptcy is filed. However, the court can take 25% of any wages (the net, take-home portion) that are earned and not yet paid at the time the Bankrutpcy is filed.



Customer: replied 5 years ago.
Thank you, youve relieved some of my concerns about bankruptcy. I feel like I can do it now.