The auction schedule for bankruptcy furniture surrendered in Chapter 7
All individuals who file Chapter 7 are permitted to claim exempt property on schedule H. Corporations are not allowed exempt property. The federal exemption statutes, and all state statutes include a provision for the retention furniture and household goods. The total value of furniture that may be retained is determined by the statute claimed, and varies widely among state jurisdictions. The process of appraisal is determined by the federal rules however, and is akin to estimated garage sale prices. Few trustees or creditors object to reasonable appraised values claimed by debtors covering their furniture and household goods.
The auction process
In large estates, the total value of furniture and goods may exceed modest statutory allowances. In these circumstances, trustees routinely retain auctioneers who specialize in bankruptcy furniture, goods and inventories. Before a sale may be conducted, the trustee (or the auctioneer acting in the stead of a trustee) must actively advertise auctions. In practice, if single, large and/or unique asset is subject to sale, the advertising means used is frequently difficult to locate.