What do you get to keep when you file chapter 7 Bankruptcy?
Currently there are two different sets of property exemptions that the law says you can keep. Your attorney will usually choose the most beneficial to you, based on the value and type of property you own.
Both sets of exemptions cover things like, clothing, jewelry, furnishings, automobiles, equipment used in trade or business, etc, in varying amounts, but one of the major differences is in the treatment of equity in your residence.
One set provides that a married couple may have $75,000 in net equity in your home (in some cases $150,000 depending on age and income) after deducting all encumbrances) while the other set doesn't provide specifically for equity in a residence, but provides for a catch all exemption which allows an additional $19,675.00 exemption in anything you choose, whether it is money in the bank, cash in your pocket, equity in real property etc.
You may also legally convert non-exempt property into exempt property prior to filing your case, provided it is done correctly. If not done correctly, it can result in a loss of the property and even denial of your discharge, so you usually need the help of a bankruptcy attorney in making these decisions.
Currently there are two different sets of property exemptions that the law says you can keep. Your attorney will usually choose the most beneficial to you, based on the value and type of property you own.
Both sets of exemptions cover things like, clothing, jewelry, furnishings, automobiles, equipment used in trade or business, etc, in varying amounts, but one of the major differences is in the treatment of equity in your residence.
One set provides that a married couple may have $75,000 in net equity in your home (in some cases $150,000 depending on age and income) after deducting all encumbrances) while the other set doesn't provide specifically for equity in a residence, but provides for a catch all exemption which allows an additional $19,675.00 exemption in anything you choose, whether it is money in the bank, cash in your pocket, equity in real property etc.
You may also legally convert non-exempt property into exempt property prior to filing your case, provided it is done correctly. If not done correctly, it can result in a loss of the property and even denial of your discharge, so you usually need the help of a bankruptcy attorney in making these decisions.
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