What happens to my property that is not exempt?

While Massachusetts has changed their Bankruptcy exemption to allow for more protection of debtors property, there is still the possibility that a debtor will have non-exempt property.

When you have filed for bankruptcy and you have property that exceeds your allowed exemptions, then you are giving up that property to the Trustee assigned to your bankruptcy case. Basically, the non-exempt property is being given to the Bankruptcy Court in order to pay off your debts. The money from these non-exempt properties will be used in order to pay your creditors. If the non-exempt property is money from say a bank account, then you just give that money to the Trustee. However, if the property is something such as a house or timeshare, then the property will be auctioned off and the money you get from the auction for that property will be used to pay off your creditors.