Trustee Buy-Out of Non-Exempt Assets in an Indiana or Kentucky Bankruptcy
Often, individuals and couples in an Indiana bankruptcy or Kentucky bankruptcy will have assets that exceed the non-exempt statutory amounts. While the trustee may be legally entitled to seize such assets and sell them for the benefit of creditors, in most cases this is not the preferred method desired by either the trustee or creditors.
Taking possession of assets, storing assets, and selling assets requires time and money. For assets such as used household furniture that may have relatively little resale value, the cost for taking possession, storing, and reselling such assets often outweighs the revenue that would be received from the sale.
As a result, bankruptcy trustees are often willing to negotiate a deal with debtors whereby the debtors pay an amount to the trustee and keep their nonexempt property, and this amount is distributed to creditors. These arrangements benefit both the debtors, who can retain their property which may have more sentimental value than market value, and their creditors, who will realize more money through such a transaction then they would if the property was seized and re-sold because of the associated transaction costs.
We Help to See if an Arrangement Can Be Made with Trustees So That Our Clients Can Retain Assets
In representing individuals and couples in an Indiana or Kentucky Chapter 7 bankruptcy, we seek to obtain for them the best results possible. We help clients identify exempt assets, and to the extent that there are nonexempt assets available, we often work with bankruptcy trustees to see if a transaction can be structured that will benefit both our clients and the creditors that will allow our clients to retain non-exempt assets.
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