Definition - What does Non-Exempt Assets mean?
Non-exempt assets refer to a classification of property that a person has when he or she has entered into bankruptcy. Non-exempt assets include any assets that the court can sell in order to pay back a person’s creditors.
Justipedia explains Non-Exempt Assets
When a person or entity files for bankruptcy, it is required by law that the person or entity turn over all non-exempt assets to the bankruptcy trustee who is elected by the court. This is the individual who is in charge of making sure that all of the debtor’s assets are distributed in the proper manner. The trustee will then liquidate all of the non-exempt assets while making sure that the debtor is allowed to keep his or her exempt assets.
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