West Palm Beach Bankruptcy Blog

Property That You Cannot Be Forced to Sell to Pay Your Creditors

Property that you own and possess such as cameras, televisions, furniture, tools, clothing, books, computers, cars, real estate, boats, and stock certificates are included in your bankruptcy estate which means that the bankruptcy trustee can sell those things to pay your creditors.

However, there are certain types of property that are not included in your bankruptcy estate including:

• Wages that are withheld for employee benefit and health insurance plans.
• Employer contributions that are made for employee benefit and health insurance plans.
• Property that you buy or receive after you file for bankruptcy.
• Tax-deferred education funds.
• Pensions and retirement plans.
• Property in your possession that belongs to someone else.
• Property pledged as collateral for a loan if a licensed lender retains possession of the collateral.
• Funds placed in a qualified tuition program or Coverdell Education Savings Account as long as you deposit the funds into the account at least one year before filing for bankruptcy and the beneficiary of the account is your child, stepchild, grandchild, or step-grandchild.