Bankruptcy exemptions are a wonderful thing. In the U.S. Bankruptcy code, you are afforded bankruptcy exemptions that allow you to protect your property when filing for bankruptcy. Because they play such an important role, finding an experienced bankruptcy attorney is a crucial step in helping you determine which property you get to keep. A bankruptcy lawyer will also be familiar with the many types of exemptions that you can invoke and help you pick the best possible form of bankruptcy and exemptions that allow you to keep the maximum among of property while getting the debt relief you need.
Exemptions in Bankruptcy
In determining how much property you will be able to keep during the course of a Chapter 7 bankruptcy, it largely depends on the type of property you own, it’s fair market value, and which exemptions that you use. There are different types of exemptions you may have at your disposal.
Exemptions in Chapter 7 vs. Chapter 13
If you file Chapter 7 bankruptcy, the statutory exemptions will determine what property you get to keep. The vast majority of my Chapter 7 clients keep all their property. In Chapter 13 bankruptcy, exemptions play a role in deciding how much you will have to pay back to your unsecured creditors. Since there is no liquidation of assets in a Chapter 13 bankruptcy, you will be able to keep all your property irrespective of the statutory exemptions.
Planning Your Exemptions
The area where I see pro se bankruptcy petitioners get tripped up the most is with exemptions. There are many considerations to take into account and these considerations become more important as the value of your assets increase. If you want to get the most of your exemptions, be sure to enlist the help of an Auburn bankruptcy attorney who knows all the nuances of U.S. bankruptcy laws and has experience with the bankruptcy court and bankruptcy trustees.