Photo: Sotheby’s Auctions/American Art
As published in a previous article, the Boy Scouts of America has filed for bankruptcy due to the more than 1,700 lawsuits that has been filed against the organization for sexual molestation cases.
As in every bankruptcy, there are exemptions that protect your property. In Florida, you are entitled to a $1,000 exemption for every car, $1,000 for personal property if you own a home, and $4,000 if you don’t.
For example, if your car is worth $10,000 and you owe $5,000, you have $5,000 in equity, but when you include the $1,000 exemption, it reduces to $4,000 that is not protected with your bankruptcy estate.
The issue with the Boy Scouts is they have Norman Rockwell paintings that are worth hundreds of millions of dollars. When you file for bankruptcy, the amount not protected by the bankruptcy exemptions, you either have to buy back that asset from the bankruptcy trustee, or hand it over and the trustee uses that money to pay back your creditors. In this case, the victims.
In the case of the Boy Scouts, their art collection includes more than 350 pieces, including 65 original Rockwell works. Rockwell paintings have sold for as high as $46 million.
Have questions regarding bankruptcy and bankruptcy exemptions? Then make an appointment with Attorney Alex Hernandez. Saturday appointments are available.
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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