When filing for bankruptcy, Arizona residents may be worried that they will lose everything in the process. Even though a bankruptcy trustee is appointed in Chapter 7 bankruptcy proceedings in order to handle the liquidation of assets, the list of bankruptcy exemptions offered in Arizona is very extensive and debtors may be able to retain a number of their assets during the process.
When people file for bankruptcy, some of their assets commonly are sold in order to repay their debts. When the filers are famous actors or actresses, then the items being auctioned can be very interesting. After famous "Singin' in the Rain" actress Debbie Reynolds' non-profit organization, which was created to open a museum consisting of her collection of Hollywood memorabilia, declared bankruptcy, a number of her famous Hollywood items were sold, including a dress worn by Marilyn Monroe in one of her most famous movies.
Reynolds held another auction last month, in which she planned to sell a number of Hollywood posters and pictures and costumes, including a bonnet that had been created for the actress portraying Scarlett O' Hara in "Gone with the Wind" and a signature black bowler hat that once belonged to Charlie Chaplin. There were also a number of items from Elvis Presley's California estate.
Arizona residents filing for bankruptcy may not have similar items for sale in their auctions. but the bankruptcy trustee may sell whatever he or she believes to be of value. However, items of sentimental value, the residential home, household possessions and some jewelry up to a certain value, may all be exempted from the bankruptcy sale so that Arizona residents are able to restart their financial lives with at least some of their most prized possessions.
Source: contactmusic.com, "Debbie Reynolds nets over $2 million from final memorabilia sale," May 28, 2014