Real Bankruptcy Exemptions

May 26th, 2014 | By | Category: Info

When you file for bankruptcy one of the issues you should access is what you get to keep. Filing for bankruptcy allows you to keep some assets, so these things are excluded from being claimed. There are some exemptions under federal law, while others are under individual state laws. These exemptions are designed to ensure that the debtor can maintain their basic way of life. However, exemption can vary with the case.

Each state has its own list of exemptions. They may rely on the state you lived in two years prior to the bankruptcy. The state that you spent most of your time is where the exemption rules will be applicable if you were living in multiple states. Bankruptcy exemptions have the merit of giving the debtor an automatic stay. This stay is placed when the bankruptcy petition is files. It stops creditors from coming after you with claims of debt repayment. At the federal level, health insurance plans, deferred compensation, certain types of retirement accounts.

Going Forward: Bankruptcy Exemptions

The exemptions that you use aren’t only based on what state you live in when you file for bankruptcy, but what state you lived in within the past 2 years before the bankruptcy filing. The Bankruptcy Code says that if you lived under more than one state during the 2 years prior to filing for bankruptcy, then you must use the exemptions provided for under the state that you lived in during the 6 month period leading up to the 2 year period before filing for bankruptcy. However, some states require that you be a current resident of their state to benefit of their exemptions. If that is the case, then you’re allowed to use the federal exemptions.

Exempting your assets can be tricky. However, a bankruptcy attorney in Chicago can advise you of which exemptions you’re required to use and are most beneficial to you.

QUESTION: What are the bankruptcy exemptions, in Indiana, under the NEW law?
Is there a webpage that compares Indiana's OLD bankruptcy exemptions vs. the NEW bankruptcy exemptions?

  • The homestead exemption and tangible personal property exemptions both increased in Indiana. Also, under the new law, the EIC portion of tax refunds are now exempt. Check out the site below. It has a link to the section of the Indiana Code regarding bankruptcy exemptions. Good luck! Of course, if you are considering filing, you should definitely contact an attorney.

  • Join this company and make more money than you thought possible. Check it out. What do you have to loose? Nothing … But you have everything to gain. Realize, this is a legitimate business with no spam involved. Join the new wave of advertising for the latest and greatest invention of the internet, the .ws domains!

  • I know of no online source, but access indiana may have one. The exemptions essentially doubled in July 2005. Real estate exemption (for the residence you live in) went from $7500 individually to $15000, personal property (everything else) went from $2000 to $4000, individually. A joint filing would double the exemptions. Exemptions apply to equity only (value-amount owed=equity).

  • When you claim bankruptcy exemptions, you have to proof the value of the property at the present time and not when you attained it. This is because the court would need to be conscious of how much they can get from it should they decide to sell it. The trustee is required to determine what non-exempt property is available. They then have to verify that all non-exempt property is sold off and then use the proceeds to pay back debts.

    Bankruptcy Exemptions?? More Considerations

    The general rule in bankruptcy is all property under which a debtor has an interest when filing a bankruptcy petition becomes property of the estate. However, some property is submitted to an ‘exemption. ‘ When property is submitted to an exemption it can be precluded from being considered property of the estate. This means the debtor is permitted to keep property outside of the bankruptcy estate, when the property would otherwise be included. Bankruptcy exemptions are only available to individual debtors.

    When property is submitted to an exemption, the individual debtor can keep that property from becoming property of the estate. While this is a highly important concept for an individual debtor no matter which Chapter the case is filed under, the reasons why this importance vary depending on the Chapter.

    Exemptions can be complex, so it is desirable to always seek the professional opinion of a competent attorney who can guide you on ways to maximize your exemptions.


    Comments are closed.