When tv characters go bankrupt all of their things are taken but dont banks just take the house as collateral?

Question

For example, when characters on tv are one hit wonders, and they buy loads of stuff then go bankrupt. There are guys that come and cart out everything, but aren't they legally theirs because they bought it. If i went bankrupt, they wouldnt take my guitar and stuff, because it's mine. Right?

Answer 1

Technically, depending on what type of bankruptcy you file, they can sell everything except your primary residence, personal vehicle and personal items (clothes, toiletries, etc). If your primary vehicle and residency are beyond your means, they can sell those also.

Answer 2

Depends on the laws of your state and the level of bankruptcy under which you declared,. In Texas your house is protected (But must still be paid for or the mortgage holder can take it.)
Your assets otherwise would be sold to satisfy however much of your indebtedness could be solved. I couldn't say about your guitar specifically but if you are contemplating bankruptcy I would call a competent lawyer to find out. New laws are in effect now to make bankruptcy a little more difficult than it has been in the past.

Answer 3

No, all of their posessions can be taken, via sherrif's sale.

Usually when a bank takes a house, it's because the house was used for collateral. But if you file bankruptcy, ALL of your posessions can be taken and sold at auction to pay your debtors - your old family silver, paid for cars, obviously bank accounts will be swept, etc.

Creditors can attach just about ANY assets that belong to you. Usually a judge will let you keep your underwear, medical supplies, that kinda thing.

Answer 4

Credit Cards are unsecured debt. There is no collateral when you buy something with a credit card (except those that are given to people with really bad credit and backed with a savings account)

So no, they can not take the things you purchased with a credit card. A rental place like Aarons could.

They can, however, sue you for the money you did not pay back.

PAY YOUR BILLS!

Answer 5

Most likely, the characters on the shows are not "filing bankruptcy", they are simply not paying debts and getting purchases repossessed. There's a rude type of comedy in seeing someone's stuff getting hauled away, and it makes for tidy sitcom plots. It doesn't have to be real.

Answer 6

it's not really yours. you have a debt and it's not equity. bankrupt courts decide what goes where. in the end, your debts will be clear