Understanding Asset Liquidation
Asset liquidation is an important step in certain types of bankruptcy, including Chapter 7. During this process, a person will “liquidate” his or her assets in order to pay debts to various creditors. This means that a person relinquishes ownership or sells some of his or her assets in exchange for the elimination of debt. Although this liquidation may seem frightening, there are a number of exemptions that can help you protect the assets that are important to you while still helping you reach financial freedom.
Not every asset is eligible for liquidation, and it’s important that debtors understand how property liquidation could affect them before deciding on a form of bankruptcy. An experienced Houston bankruptcy attorney of the Russell Van Beustring P.C., can help you better understand the entire process of bankruptcy, including liquidation. If you have questions about asset liquidation, property exemptions, or other bankruptcy topics, contact us today by calling 713-973-6650.
Commonly Liquidated Assets
While not every asset is eligible to be liquidated under Chapter 7 bankruptcy, the following items are commonly liquidated to help you pay your creditors and achieve freedom from debt:
- Secondary vehicles
- Second homes
- Some personal belongings
However, it is important to note that numerous assets can be protected through both state and national bankruptcy exemptions, so you should talk to an attorney today about the best way to protect your property from liquidation while still paying your creditors.
If you are facing a seemingly insurmountable number of debts, a qualified Houston bankruptcy lawyer of the Russell Van Beustring P.C., stands ready to help you. To discuss your questions or concerns about asset liquidation or bankruptcy in general, contact our offices today by calling 713-973-6650.