Definition: Nonexempt assets include any property that can be sold by the court. In Chapter 7 bankruptcy, the proceeds from the sale of these assets are used to pay off some or all of the creditors. In Chapter 13 bankruptcy, the debtor must repay the creditors at least the value of unsecured assets. There are both state and federal laws that define exempt and nonexempt assets.
Common Misspellings: non exempt assets
