Ugh. My Chapter 7 bankruptcy is an asset case. What now?
An asset case in Chapter 7 means that to get the benefit of the bankruptcy, you must cooperate with the trustee in the collection and sale of your property that is not protected under the exemption laws.
The trustee will arrange through your counsel a time for their appraiser, liquidator, real estate agent, or other third party to meet with you to review the property and how best to liquidate it. It is your duty under the bankruptcy code to cooperate with the trustee. Failure to cooperate with the trustee will result in your bankruptcy terminating without a discharge even though the trustee will still take the property. Said directly, once filed, you must cooperate with the Chapter 7 trustee regardless of the outcome.
In most Chapter 7 asset cases, Debtors know going in what to expect.
But what happens when a surprise happens?