Flickr | JeepersMedia
Charming Charlie had filed for Chapter 11 bankruptcy earlier this year and now the next step is for the retailer to auction off its assets which includes trademarks, domain names, a sizable customer database and social media assets.
This is common in bankruptcy cases, even for a Chapter 7 consumer bankruptcy.
With a Chapter 7 bankruptcy, depending on the state you live in, you are entitled to certain exemptions. In Florida, you have $1,000 in exemptions if you own property and $4,000 if you don’t. Anything above that amount could result in the bankruptcy trustee requiring that it be paid.
For example: suppose your car is worth $10,000 and you owe $5,000. For autos, there is a $1,000 exemption, thus, with $5,000 in equity, minus the $1,000 exemption, you have $4,000 in equity that the trustee would require payment on for the settlement of your bankruptcy estate.
Depending on the trustee’s settlement offer, you could have to pay back the $4,000 in full. If you cannot, the trustee would take possession of your car, sell it an auction, and distribute the funds to creditors.
This is basically the same scenario in Charming Charlie’s case.
Have questions regarding bankruptcy, then schedule an appointment with attorney Alex Hernandez.
Representing clients in the areas of Chapter 7 Bankruptcy, Family Law/Divorce, and car and motorcycle accidents for 20 years.
(904) 712-5565 or (305)-688-LAWS (5297).
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