Delaware Bankruptcy Exemption Uses
The Delaware bankruptcy exemption statute plays an active role in all Chapter 7 cases. Few consumers actually forfeit assets through liquidation, not because of trustee apathy, but rather because of choosing the appropriate chapter. No one wants to forfeit assets needlessly. Yet occasionally, negligence, mistakes, or failed intentional misrepresentation does result in liquidation. When considering which chapter offers the best avenue of relief, base all assumptions on full disclosure and active review under the watchful eye of a trustee.
The trustee's liquidation procedure
The first opportunity for review is provided by the debtor's bankruptcy exemption claim H, which must be included within schedules and filed with clerk before exemptions are allowed. After filing, claim form H becomes public record. During the 341 meeting of the creditors, trustees routinely discuss all exemptions appearing on claim form H, the nature of property claimed as exempt, and the methods used for value appraisals. Because trustees are ordinarily local attorneys acting in the stead of the U.S. trustee, count on their acute awareness of local market values. Through experience, trustee develop a keen eye for under-valuation of assets as an integral part of the liquidation test.
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