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Listing non-exempt and exempt assets in a bankruptcy petition

On Behalf of | Nov 11, 2021 | Bankruptcy, Chapter 7

Individuals filing a Chapter 7 bankruptcy may need to liquidate or sell their non-exempt property. As noted on The Mississippi Bar’s website, many individuals filing for Chapter 7 do not own non-exempt assets. For those filers who do own non-exempt property, however, Mississippi’s bankruptcy laws allow a portion of it to remain in their possession.

By including certain non-exempt assets in a petition, an individual may request that the court trustee exempt them from liquidation. If approved, the court may not sell the property to repay creditors. A petitioner must, however, also list all exempt assets and income.

Valuing properties under Mississippi’s bankruptcy laws

Mississippi residents may request to exempt up to $10,000 worth of their non-exempt property in their Chapter 7 petitions. As noted by Bankrate.com, non-exempt assets include cars and personal belongings such as furniture and jewelry.

Individuals wishing to keep non-exempt items may calculate whether they may qualify as exempt from liquidation. The items may fall within the state’s exemption range if they do not exceed $10,000. When assets exceed $10,000, however, the trustee may consider them as non-exempt and sell them.

Preparing an itemized list of exempt assets

In addition to $10,000 worth of personal properties, Mississippi residents need to include a list of assets considered as exempt. Disability or insurance benefits and income from retirement pensions, for example, may qualify as exempt.

Certain tools used for work may also classify as exempt. Medical devices used for a health issue such as hearing aids generally do not require selling to pay back creditors.

Regardless of whether assets qualify as exempt or non-exempt, individuals must list them in their Chapter 7 bankruptcy petition. If an individual does not have properties, the trustee may file a report noting it as a “no asset” case.

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