Bankruptcy and Furniture
Bankruptcy Furniture is the furniture that is auctioned when one declares bankruptcy; the prices are akin to a garage sale. In cases of individuals claiming bankruptcy under Chapter 7, they can claim exempt property under bankruptcy furniture. This provision however is not available for corporations.
Individuals can seek and find Bankruptcy Furniture on the internet. There are websites where among other things, bankruptcy furniture is also auctioned and people can find a good deal there. Bankruptcy furniture ranges from antique bedroom furniture to modern office furniture and one can pretty much find anything under the sun in such auctions. This is mainly because people accumulate various kinds of furniture and unlike a firm that specializes in making one kind of furniture this is more based on what was in the possession of the said individual or company at the time of bankruptcy.
Websites often also provide provisions for comparison so that buyers can make better informed decisions and find greater value for their money.
For the unfortunate souls who are filing for bankruptcy and not actually looking to buy stuff off these sales filing Chapter 7 Bankruptcy is one way of avoiding any overburdening debt that you may have incurred and in this provision one is allowed to keep some part of their personal belongings and also a part of your home.
An attorney is appointed to value the property that is not exempt and s/he will liquidate these assets to pay off the creditors. Bankruptcy furniture happens to be one of the categories of personal belongings that are exempt under this section. The total value of Bankruptcy Furniture that you are allowed to retain depends on the statute under which the bankruptcy is claimed and differs from state to state.
Because bankruptcy furniture is exempt for individuals the creditors or trustees may in some cases raise objections to the value that the furniture has been assessed for. In other cases where the bankruptcy furniture is of relatively higher value and exceeds the statutory value determined for exemption the trustee will appoint an auctioneer who specializes in bankruptcy furniture.
However, since filing bankruptcy under Section 7 is meant to protect the bankrupt as well there are certain criterion which must be fulfilled before the individual can be eligible for filing bankruptcy. The important one is that the disposable income of the person filing for Chapter 7 must be less than the median income in the state of residence. This among other things like credit counseling, giving notice to the creditors and having current tax returns forms part of the eligibility criterion and in most cases people are not eligible for want of the median income criterion.
You can further information at bankruptcy furniture
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