As you might know, filers using chapter 7 can be subject to property losses in some cases. However, not everything is vulnerable to the bankruptcy trustee's powers of seizure. Read on to find out what might be vulnerable, what is protected, and how filers can use exemptions to protect property.
What Can be Seized?
The law says that some items exceeding your state's exemptions can be taken. When that occurs, the property is sold and the funds are used to pay some of your bankruptcy administration expenses and sometimes, a creditor.