Can I Sell or encumber my properties once I file Bankruptcy?
If you filed a Chapter 7 Bankruptcy, the Chapter 7 Bankruptcy Trustee becomes the owner of your properties. However, the Chapter 7 Bankruptcy Trustee is unlikely to liquidate your assets, especially if you retained a Sacramento Bankruptcy Attorney, when you claimed your assets exempted pursuant the California exemption statutes. Nonetheless, you should not enter into an agreement to sell your assets whether your assets are exempt pursuant to the California exemption statutes, encumbered by a secured lender, or is leased. You can get permission from the court to sell your assets through a motion to compel abandonment if you can show that the asset has no net value after the California exemption or encumbrance of secured lender.
If you filed a Chapter 13 Bankruptcy, you remain in possession and control of your properties. Nonetheless, you must get authorization from the court to sell your assets. Doing so can negatively impact your Chapter 13 Bankruptcy plan. It is better, with some exceptions, to sell or refinance your assets before filing your Chapter 13 Bankruptcy.
This is critical for vehicles and real estate but not so much with household furniture or clothing.
For more information, talk to an experienced Sacramento Bankruptcy Attorney. I have additional offices in Stockton and Fairfield, California that serves the following cities:
Alpine, Amador, Butte, Calaveras, Colusa, El Dorado, Glenn, Lassen, Modoc, Mono, Nevada, Placer, Plumas, Sacramento, San Joaquin, Shasta, Sierra, Siskiyou, Solano, Stanislaus, Sutter, Tehama, Trinity, Tuolumne, Yolo, Yuba City, Lodi, Galt, Manteca, Modesto, Tracy, Davis, Woodland, Elk Grove, Carmichael, Citrus Heights, Orangevale, Antelope, Fair Oaks, West Sacramento, Roseville, Rocklin, Rancho Cordova, Lincoln, North Highlands, Folsom, El Dorado, Ripon, Fairfield, Vacaville, Dixon, Vallejo, Woodland, Davis, Winters, Oakdale, Newman, Patterson.