What happens if I own non-exempt real estate?
June 29, 2022
By Diane Drain Attorney & Retired Law Professor
If you have non-exempt assets in your case, you must pay the fair market value of such assets through your Chapter 13 Plan. To put it another way, your creditors are entitled to the amount they would have received if you had liquidated those assets through Chapter 7. The Trustee will notify your creditors to file a proof of claim. The Debtor, Trustee, and other creditors have the right to evaluate claim proof and object to any that they believe are incorrect. The court will approve all claims not objected to by the Trustee, you, or another creditor, and the creditors will receive a pro-rata portion of whatever the Trustee distributes, after paying certain debts in the confirmed plan.
About the Author: Diane Drain
Diane is a well respected Arizona bankruptcy and foreclosure attorney. As a retired law professor, she believes in offering everyone, not just her clients, advice about bankruptcy and Arizona foreclosure laws. Diane is also a mentor to hundreds of Arizona attorneys.
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