The rule of thumb in Kansas is to estimate what the property would sell for in a private sale – through the paper, Craigslist, or at a garage sale. This is somewhere between auction value and retail.
If a debtor in Chapter 7 bankruptcy has non-exempt property they want to keep and they can afford to buy back the non-exempt property from the Chapter 7 trustee, they can usually keep the property. The Chapter 7 Trustee has liquidation powers, which means they can ask a debtor to turn over the non-exempt property to be auctioned off. The problem with an auction is that it takes time and by its very nature is unpredictable. If the debtor wants to keep – for instance – a jet ski, the Chapter 7 Trustee will generally allow the debtor to make an offer to purchase the jet ski from the bankruptcy estate. The Chapter 7 Trustee usually will accept payments in lieu of a lump sum payment.
Non-exempt Property raises serious, potentially complex issues. If you have questions about non-exempt property or any other issue, please give us a call at email us now.for a FREE Consultation over the phone, in person or you can