In the world of consumer bankruptcy, everything revolves around your household. Everything you own is part of your ‘household’ as a creditor will look to claim any excess disposable income. Therefore, understanding the things that constitute a household good in bankruptcy can help you stay out of trouble and also help you keep track of your finances efficiently.
Clothing and Footwear
When you file for insolvency, you aim to make as little money as possible. After all, you are not earning any income in default. So, the first thing you should do is to keep track of your clothes.
Just because you have filed for insolvency does not mean you are allowed to throw away your devices. The creditors will undoubtedly try to get their hands on the appliances you own, including the refrigerator and the stove.
House Decorations and Furniture
While the creditors will try to claim the money you have spent on decorations and furniture, they will not attempt to get their hands on the items themselves. Instead, all creditors will try to get back is the cash you have spent on them.
Bicycles and Scooters
If you own a bike or a scooter, it will also be under the scanner of the creditors. Since you have filed for insolvency, the creditors will try to get their hands on the money you have used for maintenance, registration, and insurance for them.
Other Equipment and Toys for Children
If you have kids, they have a lot of toys. And if you own one of those expensive toys, the creditors will undoubtedly try to get their hands on the money you have spent on it. However, the toys themselves will not be under the scanner. The creditors will try to get their hands on the cash you have spent on the toys. And if they find out you have been spending too much, they can sue you to get the money back.
Sports Goods and Camping Goods
If you have been keeping track of your spending in the hope of keeping yourself out of insolvency, there is a chance that you own sports goods like football or a game of hockey. Similarly, higher chances are you have been keeping a few camping items like a tent. And if you own any of these items, the creditors will try to get their hands on the cash you have used for them.
Keeping track of your spending is a must if you want to keep yourself out of trouble while filing for bankruptcy. And if you own any of the things mentioned in this article, you should keep track of your spending and make sure that the money you spend is the money you are legally entitled to pay. A bankruptcy attorney from Fair Fee Legal Services can guide you through making decisions, paperwork, and procedure that marks a bankruptcy filing.
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