Nonexempt Property Bankruptcy Attorneys in Mississippi

When one mentions “bankruptcy” the first that comes into mind is losing everything you worked hard to earn. After all, there is nothing more devastating than having your hard-earned assets taken away. However, this isn’t always what bankruptcy means. It’s time to challenge the notion and dispel the fear of bankruptcy by seeing it in a different way. 

Of course, this isn’t to say that bankruptcy is a good thing. Think of bankruptcy as a fresh start. Also note that in bankruptcy you always have the chance to exempt certain properties to protect them. Assets such as cars, real estate, and retirement accounts can be exempted. 

Now, on to the question. What is nonexempt property bankruptcy? From the word itself, nonexempt property bankruptcy is properties that you do not declare on your exemption list. The fate of these properties lies in the type of bankruptcy you file. 

Certain assets are considered as nonexempt property in bankruptcy cases. Among them are residential property you don’t own, new vehicles where you have equity, instruments not needed for profession, collection, investments not for retirement, jewelry, and artwork. 

Enlist the help of a Jackson bankruptcy attorney to walk you through this challenging time and help you take the necessary steps. Dealing with bankruptcy doesn’t have to drain you. 

GET MY FREE CONSULTATION!
Rollins Law Firm Mississippi Bankruptcy Lawyer

Ask a question or request a free consultation.

Rollins Law Firm Mississippi Bankruptcy Lawyer

601-202-3942

How Does Nonexempt Differ from Exempt Property?


Nonexempt Property in BankruptcyAs previously mentioned, nonexempt property in bankruptcy is property not declared. Properties owned by the debtor are technically classified as nonexempt unless the debtor claims an exemption in some property. The exemption will only be valid to the extent of the value claimed or allowed. Properties aren’t considered as nonexempt automatically. 

Trustees may take nonexempt property for liquidation for the benefit of the creditors. Creditors also have the power to seize properties if there is judgment against the debtors. 

Exempted property, on the other hand, is defined as necessities which the debtor can use to pay for living expenses. Exempted property can come in the form of real estate or personal properties including appliances. However, when the properties outweigh the benefits for the debtor, the properties could be classified as nonexempt properties. Should the debtor fail to provide a list of exempted properties, all their belongings would be classified as nonexempt property and would then be subject to liquidation. 

Contact an experienced Jackson, Mississippi bankruptcy lawyer to explain the concepts of exempt and nonexempt property in bankruptcy and walk you through the process should you be faced with it. 

Nonexempt Property in Chapter 7 Bankruptcy

Chapter 7 bankruptcy or straight/liquidation type of bankruptcy clears any type of debts and can be filed by an individual who cannot afford to pay bills as a means to help reset their financial situation. Chapter 7 bankruptcy entails having to give up some possessions.

Nonexempt property in bankruptcy of this type involves a court-appointed bankruptcy trustee to sell your nonexempt property, the money earned from this will help you pay your living expenses. Certain dues known as priority debt will be the first to get paid off. This includes taxes, child support, and domestic support obligations. Utility bills, credit card debt, and other living expenses soon follow.

As for exempt assets in a chapter 7 bankruptcy, these properties will be retained and won’t be touched by creditors. The filer must provide a list of assets and liabilities to the court. According to Mississippi law, filers can exempt up to $10,000 worth of personal property.  Other properties you can keep include houses, cars, and property with a secure loan; clothing since most have very little value; and retirement accounts. 

If you find yourself dealing with nonexempt property in bankruptcy, consult an experienced bankruptcy attorney to help you with the process and ensure that you make the best financial decisions for yourself. 

Nonexempt Property in Chapter 13 Bankruptcy

Chapter 13 bankruptcy is defined as a wage earner’s plan and is typically filed by individuals who have a wage or a regular income. This enables workers to have a plan to repay all of their debts should their finances suffer. Apart from having regular income, chapter 13 bankruptcy can only be filed by those whose unsecured debt do not exceed $419, 275 and whose secured debt doesn’t exceed $1,257,850. 

Individuals filing for chapter 13 bankruptcy must also have updated tax filings and has not filed chapter 7 or 13 bankruptcies in the last 180 days. 

Nonexempt property in this bankruptcy type won’t be sold by trustees. The filer will pay an equal amount to the value of nonexempt property to unsecured creditors. 

Certain properties can be exempt in chapter 13 bankruptcy according to Mississippi law. There exists a minimum calculated amount that debtors must pay in chapter 13 bankruptcies, which the nonexempt property’s value has a hand in. Exemption law impacts what properties will be considered in calculations, hence determining the amount debtors must pay in their chapter 13 plan.

When faced with chapter 13 bankruptcy and other financial conflicts, it is best to seek assistance from a Ridgeland bankruptcy attorney who can explain complex bankruptcy concepts to help you better understand and navigate your situation.

When Can One Keep Nonexempt Property in Bankruptcy?

One can keep nonexempt property in bankruptcy when the trustee abandons the property. In chapter 7 bankruptcy, the trustee has the power to sell these items and use the earned money to repay unsecured creditors. The minute the trustee decides that the items aren’t valuable enough, they abandon the property. 

Situations that call for the trustee to abandon the property include:

  • Upside down property or loan-secured property that costs more than its market value. 
  • Properties that don’t have a significant amount of nonexempt equity that after deducing would leave nothing to the creditors.

One can also keep nonexempt property when the debtor offers to repurchase by paying nonexempt value. Chapter 7 bankruptcy debtors can also offer to exchange an exempt property for nonexempt property, which usually depends on asset value, cost, and labor associated with selling the said asset. 

Consult an experienced bankruptcy lawyer for legal advice regarding keeping nonexempt property and the circumstances one is subject to when selling, repurchasing, and swapping properties. 

Seek Legal Help

If you are faced with bankruptcy issues and would like to clarify what constitutes as nonexempt property in bankruptcy, contact a Jackson, Mississippi lawyer from the Rollins Law Firm by calling 601-202-5101. The law firm helps you decide on the best course of action when faced with bankruptcy to help you protect your assets and pay off your living expenses.

Whether it’s a chapter 7 or chapter 13 bankruptcy case, the Rollins Law Firm can walk you through its intricacies. A bankruptcy case doesn’t have to be stressful and shouldn’t leave you drained and dry. Schedule your appointment with the Rollins Law Firm’s bankruptcy attorneys immediately.

GET MY FREE CONSULTATION!

With us, you are never alone.

The Rollins Law Firm is committed to providing you with quality legal assistance during the loss mitigation process. From the moment you walk into our office, you can rest assured that your needs will be met. We are by your side throughout the loan modification process, from getting you a good deal to preparing your loan modification documents.

Schedule a Free Consultation

Learn more about how filing for bankruptcy can help you.

Give us a call to schedule your appointment

GET YOUR FREE CONSULTATION

Testimonials

Rollins Law Firm has gave me hope during a dark time

I was searching the web for information in on filing bankruptcy and discovered Rollins Law Firm. My situation was so uncertain and overwhelming but after consulting with Grayson, Jennifer, and Alex at Rollins Law Firm has gave me hope during a dark time. I am grateful for the help that I received and recommend Rollins Law Firm to anyone that is having difficulty with debt and don’t know where to start. There is a rainbow at the end of every tunnel. 🌈🌈❤️❤️

Courtney Crawford

Rollins Law Firm was there every step and explained it all in a way that was easy to understand

This process is a hard decision to make.  Rollins Law Firm was there every step and explained it all in a way that was easy to understand.  They answered my questions, sent me emails and text messages with information and appointment reminders.  There were some videos and a booklet that was very very informational and helpful to me.

Lauren Primeaux

I had a wonderful experience

I had a wonderful experience. The staff were nice and very informative. The process was quick and easy. Very affordable for me being a single parent. Would recommend anyone there.

Lashay H

Fast response and professional advice

Fast response and professional advice. Really great to work with and understand what a difficult time in one’s life this is. Will recommend to anyone

Bryan Aust

Rollins law firm made it easy and less stressful!!!

Some of the nicest people I’ve met. Very patient, kind, and helpful. They helped me through a very difficult situation. Filing bankruptcy is very challenging and the people at Rollins law firm made it easy and less stressful!!! I thank you guys so much for all of your help through this difficult situation!! I will recommend this firm to anyone considering bankruptcy!!

Stephanie Harris

Helped me through a very stressful time.

Helped me through a very stressful time. Mr. Rollins and his staff have been very nice and professional. They are always very quick to respond to any questions I may have. I would recommend Rollins Law Firm to anyone.

Kim Ainsworth

Relieve your financial worries and get you back on the right track!

My wife and I were in an impossible financial situation where over time, we had built up so much debt that we could no longer keep up with all the payments. We were getting further and further behind until we reached out to the Rollins Law Firm for help. They have the knowledge and expertise through their experience to handle our particular situation. Their entire team of professionals are always available to answer questions, explain your options, and then provide the legal service that you need to relieve your financial worries and get you back on the right track! I recommend the Rollins Law Firm to anyone who needs help to deal with financial struggles.

Mike Zegelien

They are the most respectful people

They are the most respectful people. They are about their business. I couldn’t have chosen a better Law Firm! I would refer them to anyone! Job well done

Beverly Wilson

They answered all my questions and didn’t make me feel stupid for asking them

This firm is amazing Mr. Rollins, Alex, Grayson, Jessica, and the whole crew. They answered all my questions and didn’t make me feel stupid for asking them. I met with a couple of attorneys about my situation and none of them came close to being as thorough as Mr. Rollins, save yourself the time and effort, no need to call a thousand attorneys, choose the Rollins law firm and get your financial life back.

Jonathon W

The Rollins Law Firm has made filing for bankruptcy very easy and understandable for me and my husband

The Rollins Law Firm has made filing for bankruptcy very easy and understandable for me and my husband. We are young and clueless about a lot, so having them walk us through literally everything has been great! The staff is wonderful and very responsive. We have never waited long for a call, text, or email back. We want to thank Breanne, Alex, Grayson, and Mr Rollins himself for such a positive experience. Of course, bankruptcy isn’t a good thing but when it’s your only option, this is the firm you want to use! It’s been affordable and quick. We are super pleased with the experience from the time we first called their office til today after filing with them!

Rebecca Harvey

The Rollins firm went above and beyond helping me

The Rollins firm went above and beyond helping me with my situation during the on going covid 19 crisis.

Owens Booker

They made the process so easy to complete

The Rollins firm assisted me at a very low point in my life. After having a lot of medical issues and expenses, I found myself unable to make ends meet. Mr. Rollings and his staff worked very promptly to help. They made the process so easy to complete.

Vinester Smith

Definitely give this place your business, you wont regret it!

I used this firm in April and was blown away by how simple they helped to make the process for me. Every question I had, no matter how repetitive it was, they answered. I worked with Jessica a lot and she was amazing. Very patient and knowledgeable! If i could give them more stars I would. Definitely give this place your business, you wont regret it!

Natalia Ramsey

I’m feeling a lot better about my financial future and thankful for all their help.

I went into Mr. Rollins’ law firm not knowing what to expect. After my first meeting with his team, I knew I made the right decision to contact his office. Everyone was knowledgeable and very willing to answer any questions and prompt with their responses. I’m feeling a lot better about my financial future and thankful for all their help.

Dawn Barfield