Of course you want to know what is going to happen to your non-exempt property that had to be included in your bankruptcy. Your Louisville bankruptcy attorney will go over each one of these properties individually and advise you as to what possibly may happen to it.
Loans and Liens
On some of your property it may have liens against it. For example, you may have borrowed money to buy your car. As security, the lender put a lien on it which means that if you don’t pay back the loan he can take the car.
Your bankruptcy trustee will only be concerned as to how much equity you have in the vehicle. For example, how much value does the car have compared to how much is left owing on the loan. The bankruptcy laws vary in the different States. In most cases you are allowed to exempt a specific amount of equity. So this determines what the Trustee may do with the non-exempt property. If there is no equity, the trustee will not be interested in taking it.
You will have to keep up the payments on them if you are going to keep them, otherwise the lender can take them. The lender who will be aware of your bankruptcy may want you to sign a new agreement stating that you are personally liable for the debt. With each of the states having their own regulations, and then Federal regulations also being in place, there is no one set answer as to what can specifically happen with any one type of property. Every bankruptcy case is judged on its own merit and circumstances.