Submit a Request...Receive the help you need!
We've helped 17 clients find affordable attorneys today.

Click here to know more about membership
  • Members have 24/7 emergency access to their attorneys via Mobile App.
  • Legal consultation for all personal legal matters.
  • You get instant access to your own dedicated law firm.
  • Membership covers you, your spouse/partner, children and dependents.
  • 101 more reasons. Read here
Close

Bankruptcy exemptions: An overview

HomeBankruptcyBankruptcy exemptions: An overview

Bankruptcy exemptions will tell how much of your assets you will get to keep. It will also help keep your payments low.

Overview

Just because you filed for bankruptcy does not necessarily mean you will lose all of your assets.

Bankruptcy exemptions will help you keep some of your assets safe despite the bankruptcy.

 

Specific kinds of properties can be protected by bankruptcy exemptions.

Some of these properties include motor vehicles and even your wedding ring.

There are instances where you can get to keep the whole value of your asset, while there are times when only a certain amount of your asset will be protected.

You can opt to go for the “wildcard exemptions,” which can be used for any of your property.

If you get to exempt your asset, that property won’t be taken during your bankruptcy.

How it Works

Bankruptcy exemption depends if you will file the Chapter 7 bankruptcy or the Chapter 13.

Read more about Bankruptcy Chapters

The Chapter 7 is where an appointed trustee will sell your assets so that you can pay your debts to your creditors, which is why it is called liquidation bankruptcy. If you were able to exempt any of your assets, then the trustee can’t sell it.

Meanwhile, for the Chapter 13 Bankruptcy, you can keep you assets so that you can reorganize all your debts. But the amount you will pay your creditors depends on how much of your properties you were able to exempt.

The value of the possessions you weren’t able to exempt must be paid to the non-profit unsecured creditors like credit card issuers when you file for bankruptcy.

In this type of bankruptcy, your payments will be low because the amount will be reduced based on the value you have exempted for your assets.

Other factors

Other major factors that will determine your bankruptcy exemptions are the state and federal bankruptcy exemptions as well as the federal non-bankruptcy exemptions.

To know if you can avail bankruptcy exemptions, you should consult or hire an attorney.

Fill the Form available on the right of your screen and avail instant legal help.

Importantt: The articles available on uslawyer.us are neither legal advice, nor a replacement for an attorney. The articles are general information and guidance concerning different legal issues. We make sure that these articles prove helpful to you but we do not promise or guarantee that they are suitable to your condition. We also do not take responsibility for any loss that might cause to you using these articles. Hence, it is strictly suggested to not to rely on the information provided in these articles completely without getting expert legal advice. It is also suggested to consult or hire an attorney in case of any doubt.


Comments (1)

Add Comment

Your email address will not be published. Required fields are marked *