Will They Take My Furniture And Other Belongings If I File Bankruptcy?

Are you considering bankruptcy but are afraid you’ll lose everything in your home including your furniture? If you are, it’s normal but I have good news! During my many years providing bankruptcy services in Connecticut, this and many more questions come my way, and thankfully most of the time I have good news for my clients. So in this case, read on to find the answer and feel free to give our office a call if you have more concerns or questions.

So will you lose your furniture and other things in your home if you file bankruptcy?

No, you will not! I know that’s a very simple answer but let me explain so I can make it clear to you.

I have filed thousands of bankruptcy petitions and not once has anyone from the trustees office gone to anyone’s home to inspect their furniture. In a normal consumer bankruptcy case the trustees office doesn’t even have the time to inspect everyone’s home.

What if you own genuine antiques?

If you had genuine antiques like real persian rugs or antique furniture and so forth, you wouldn’t have to worry about anyone paying a visit to your home but you would have to submit detailed appraisals of your belongings. Also you should realize that your furniture exemption is now over ten thousand dollars under federal exemption laws (source: http://www.actionadvocacy.com/connecticut-bankruptcy-exemption-laws/) and when a husband and wife file bankruptcy together they both have furniture exemptions and other household goods totally over $20,000 – just for furniture.

The trustee in bankruptcy realizes that he or she would have to conduct an auction of your furniture before the property is typically sold in bankruptcy. As a practical matter, you may be surprised to learn, if you have ever attended a furniture auction that a house full of furniture will rarely if ever surpass the $20,000 mark.

Under Connecticut exemptions (see link above) household goods are 100% exempt and if necessary one can use Connecticut exemptions in the bankruptcy court. Exemptions are one of the most complicated areas of the bankruptcy code, and that’s one of the main reasons I always tell people I encounter, why it’s important to speak to a professional – preferably a bankruptcy lawyer – and get their advice on how to deal with your furniture.