If you have any non-exempt property (property not protected by law), the bankruptcy trustee has the ability to seize and sell the property. “Exemptions” refer to federal or state statutes which allow a debtor to keep certain types of property from seizure in bankruptcy or to satisfy a judgment. For example, exemptions exist to protect retirement accounts, such as a 401(k) plan. Exemptions must be set forth in Schedule C, a bankruptcy document filed by the debtor. Any assets that the trustee can recover are sold and the proceeds distributed to creditors.
This is an area that is wrought with danger, and only an experienced attorney can properly advise you as to what property you are allowed to keep, and what property the trustee can take to repay your debts.
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