Schedule C
If a debtor wanted to pay special attention to a particular schedule on their petition it is highly recommended by experienced bankruptcy attorneys to double checking schedule C. Why? Simple, because schedule C contains all property claimed as exempt. Consequently, if a debtor files Chapter 7 liquidation and forgets to exempt certain property, the trustee may liquidate that property to pay off creditors.
Let’s assume a debtor files for Chapter 7 liquidation. The debtor has among their assets a beautiful 1969 Camaro. Debtor accurately depicts the value of the vehicle at 15K. On debtor’s schedule C debtor uses the automobile exemption. Unfortunately, debtor doesn’t realize that the auto exemption will not cover the entire 15K. Debtor files for bankruptcy. Now, the trustee may liquidate the asset (the Camaro), return in cash to the debtor the amount of the auto exemption, and use the rest of the funds to pay of debtor’s creditors. Oops!
California, don’t let this happen to you! There is a very simple solution to the hypothetical proposed above. To find out the answer speak with an experienced bankruptcy attorney today.
If you have a question regarding Bankruptcy in San Jose please contact us at 408.279.2288 or visit www.bkanswers.com and we can connect you with one of our experienced San Jose Bankruptcy Attorneys. After you have spoken with one of our San Jose bankruptcy attorneys we can schedule you a free face to face appointment in our office location nearest you. Our team of San Jose Bankruptcy Lawyers can assist you with all aspects of your case. If you have questions about filing a chapter 7 bankruptcy, a chapter 11 bankruptcy, a chapter 13 bankruptcy, lien stripping, cram down, stopping a foreclosure or wage garnishment, discharging debt, etc. we can help! We have bankruptcy attorneys located throughout California who can assist your financial needs. Please feel free to complete our free bankruptcy evaluation and we can quickly determine if you are a qualified candidate for bankruptcy.
