Liquidation bankruptcy may allow exempt property in Tennessee

Liquidation bankruptcy may allow exempt property in Tennessee

| Feb 11, 2016 | Chapter 7, Firm News

Tennessee residents who are considering bankruptcy may be concerned about some of their assets. This concern is understandable as some property can have sentimental or other personal value. One woman in another state was able to keep such an item even though she filed for liquidation bankruptcy.

Reports stated that the woman was facing $23,000 in debt, and a bankruptcy trustee wanted to sell one of her items in order for the money to be put toward that debt. The item was a Book of Mormon published in 1830. This book is considered rare, and it was noted that a copy in good condition could be worth approximately $75,000 or more. However, the woman did not wish to part with the book.

At first, a court ruled that the book must be sold under her bankruptcy filing. However, that ruling was overturned after the woman filed an appeal. Under her state’s law, a Bible was exempt from bankruptcy liquidation, and the appeals court ruled in her favor, allowing her to keep the religious text. Though the item is considered quite valuable, the woman has reportedly not had any intentions of selling the book. She was also reported as being happy with the appeal.

This example may be able to help individuals who are concerned about losing all of their assets under liquidation bankruptcy. Some property may be exempt, but laws regarding exemptions can vary. Therefore, Tennessee residents may wish to find out whether any of their property could potentially be exempt if they wish to move forward with Chapter 7 bankruptcy.

Source: stltoday.com, “Illinois woman can keep rare Book of Mormon despite bankruptcy, court rules“, Robert Patrick, Feb. 4, 2016