I have just filed for Chapter 7 Bankruptcy. I have a small landscaping business on the side along with my full time job. Will I lose the equipment needed for my landscaping business or can I keep it?
-- Ken
A.
The fate of your business equipment depends on the amount of exemptions available in your state. Exemption law is the only part of bankruptcy that is different on its face from state to state.
The federal bankruptcy exemptions have a "tools of the trade" exemption. Many states do as well.
If there is no exemption available, make sure that you have valued the equipment at what you could sell it for in its present condition. For items of small value, the debtor is usually the trustee's best bet for a buyer. Some trustees will even let you spread the payments out over several months. Other trustees decline to administer assets of small value since their liquidation often produces no meaningful return to creditors.
