Chapter 7 bankruptcy may be a good way for someone in Maryland to escape insurmountable debt. Under Chapter 7 rules, the debtor will liquidate non-exempt assets to pay creditors. This category is different from Chapter 11, which involves a payment plan. When filing for Chapter 7, the debtor must list their assets. Some may have questions about what assets should appear on the list.
Listing assets under Chapter 7 rules
There are three general categories of assets to list when filing for Chapter 7. These assets include personal property, real property and intangible property. Personal property refers to material items, such as artwork and furniture. Real property may consist of real estate, such as any homes owned. Intangible property refers to something that is not physical but has value. A stock investment brokerage account could be an example of intangible property.
When the court requires someone to list all assets, the debtor must be thorough. Accidentally omitting assets may create problems, while intentionally not listing assets could result in legal jeopardies. Debtors should be aware that they attest under penalty of perjury that they are presenting the court with a complete listing of assets.
Further considerations about assets
Certain assets, such as veteran’s benefits, may be exempt from liquidation. When claiming an asset is exempt from Chapter 7 bankruptcy proceedings, The debtor must file a separate list of such items. The court will then review the list and make a determination.
Filing for Chapter 7 bankruptcy protection could set the course for a fresh financial start. At a minimum, filing for bankruptcy would end the stress associated with collection threats and other problems from excessive obligations.
