The internet is a wonderful tool, and can be very useful during your Chapter 7 Bankruptcy or
Chapter 13 Bankruptcy.
First, on-line auction sites, such as eBay, can help determine the fair market value of your personal property, including household goods and furnishings. When you file for Bankruptcy, the law requires that you list all of your personal property in the Bankruptcy documents (known as your "Schedules"). Personal Property is typically listed in Schedule B of the case. You must provide a good faith estimate of the market value of your property. Failure to disclose property or reasonable values can subject you to criminal penalties. So this is a very important step of the Bankruptcy process. Websites, such as eBay and Craigslist, provide good evidence of an item's reasonable and fair market value. The key is to deduct the online expenses from your estimate when searching for values on these websites.
These same auction sites can also help you sell property prior to filing for Bankruptcy. Selling property before a Bankruptcy is not
per se illegal, but you should proceed with caution and consult with an attorney before selling anything. In some cases, your transfer be construed as fraudulent, which could negate your Bankruptcy after filing. Nevertheless, in most cases, as long as you are not selling the property to someone you know (such as a friend or family member), and the selling price is fair and reasonable, you can sell your property without any problems or consequences.
Typically, you should hold on to your property. It is unusual to lose your personal property during a Bankruptcy, as state and federal exemption laws will generally protect such property. However, in some cases, it may be beneficial to sell your property and spend the proceeds on household/living expenses. Again, it is critical to speak with an experiencedBankruptcy attorney prior to selling any property in anticipation of
Bankruptcy. This is especially important when contemplating Chapter 7 Bankruptcy.
Finally, even when you can exempt all of your personal property, thereby protecting the property from the Bankruptcy, you may need immediate cash. Many clients are often behind on household expenses prior to Bankruptcy, so the internet auction sites are a good way to sell personal items that are no longer wanted or needed.
If you are considering consumer Bankruptcy, or want to explore your options, the Law Office of Nicholas R. Westbrook can help. Please call my office at
(713) 893-6204 to schedule a free consultation at one of our convenient office locations around Houston. As an experienced
Houston Bankruptcy attorney, I will help determine whether consumer Bankruptcy is the right solution for your unique situation. The road to financial freedom starts here.
Houston Bankruptcy Help- Law Office Of Nicholas R. Westbrook
3730 Kirby Drive, Suite 1200, Houston, TX 77098
(713) 893-6204 ()