Under the provisions of Chapter 13 and chapter 7 bankrupt debtors require to sell his assets and private property to pay his liabilities. Chapter 7 bankruptcy is greatly referred to as bankruptcy of liquidation because it includes selling of all the non exempted assets to pay outstanding liabilities. Despite its common name, chapter 7 is not complete liquidation since there are assets that are exempt from being sold off. Chapter 7 include disposal of following assets to pay of liabilities. Assets broadly include land and building, furniture and fixture, plant and machinery, cash in hand, cash in bank, and miscellaneous assets, but for the purpose of chapter 7 assets also include private property of bankrupt debtor. His private property includes jewelry, owned house property, etc

Assets including collections

Collections of coins, stamps, buttons or anything that holds actual monetary value must be sold during a Chapter 7 bankruptcy proceeding. This includes collections that were handed down as family heirlooms. If the collections have monetary value, those assets must be sold off in order to pay the outstanding debts. Because of this rule,Bankruptcy Help individuals with valuable collections should research prior to filing bankruptcy whether the value of the collection is enough to pay off the debts without filing bankruptcy.

Investments, bonds and stocks

All types of investment falls under the rules of Chapter 13 Bankruptcy-if it is not in a protected account, then under chapter 7, those assets will be liquidated to pay off debts. Unreasonably high priced items are also included in chapter 7. The part of chapter 7 bankruptcy that is most often left to the individual states is to determine what constitutes a reasonable or unreasonable price on certain assets. Some assets are exempt under chapter 7, but only if they are determined by the state laws to be reasonably priced. A house is one such asset. If a person’s home is considered reasonably priced, it is not liquidated but if it is considered above that line according to state law, then it is sold. The same rule of thumb applies to a car. Clothing, furniture, household goods and certain tools all fall under the same rules. They are exempt up to what is considered a reasonable value, but if they fall above that amount, then those assets are sold during a chapter 7 proceeding.