Exemptions In Federal Law
A debtor who files bankruptcy under federal law must follow 11 U.S.C. 522 when claiming exemptions. Some of the major exemptions that may be available to a person filing bankruptcy under federal law are listed below, with a brief description of each exemption. A lawyer should be consulted to determine the particulars of each exemption and to determine all available exemptions that may be filed.
- Homestead (equity in dwelling used as residence)
- Up to $18,450 in value - Equity in automobile
- Up to $2,950 in value in one motor vehicle - Personal property
- Household items (Animals, appliances, furniture, clothes, etc.), up to $450 each item totaling $9,850 in value
- Jewelry and heirlooms: up to $1225 in value - Tools of the trade
- Up to $1850 in value - Insurance
- Disability benefits
- Unmatured life insurance is also usually exempt - Pensions
- ERISA qualified benefits needed for support
- Amount reasonably necessary for support of debtor and dependants - Public benefits
- Unemployment
- Workers compensation
- Public assistance
- Social security
- Veteran's benefits - Alimony and child support
- Amount reasonably necessary for support of debtor and dependants
Do I Need a Bankruptcy Lawyer?
Bankruptcy is a very complicated process and filing an exemption incorrectly can lead to that property being seized, even if the property would have been exempt had the exemption been filed correctly. A bankruptcy lawyer knows the ins and outs of filing for bankruptcy, and can recommend what chapter of bankruptcy is right for you, ensuring that your exemptions are filed correctly. |
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