What Are Exemptions?

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What Are Exemptions?

11 U.S.C. º 522(b) allows an individual debtor to exempt real, personal, or intangible property from the property of the estate. State law protects exempt assets from distribution to your creditors. Typically, exempt assets include vehicles up to a certain dollar amount, the equity in your home up to a certain amount, and tools of the trade. Exemptions are claimed on Schedule C. As with all schedules, it is important to fully complete and provide all the information requested. If no one objects to the exemptions you have listed within the time frame specified by the bankruptcy court, these assets will not be a part of your bankruptcy estate and will not be used to pay creditors through your bankruptcy case. Deciding which assets are exempt and how and if you can protect these assets from your creditors can be one of the more important and difficult aspects of your bankruptcy case. It is extremely important to consult an attorney if you have any questions regarding the issue of exempt assets.

Other Your Assets and Bankruptcy FAQs

Q: If I File For Chapter 7 Can I Keep Some Of My Property?
A: In general, Chapter 7 bankruptcy gives up all of your non-exempt property. Exempt property is property defined by state law which is not discharged from … More
Q: Will I Lose My House, Car, And Other Personal Property?
A: Not necessarily, each state has laws that determine which items or property are exempt from being taken away. For example, many states exempt personal items such as … More
Q: Will I Be Required To Sell My Assets?
A: Yes. A lot of your property which is deemed a necessity will not be released, but filing bankruptcy (under Chapter 7) will often require you to give up certain types … More
Q: Cant I Just Transfer My Assets To A Friend Or A Living Trust Before I File For Bankruptcy?
A: These types of transfers may be considered fraudulent and your Chapter 7 trustee may be able recover the property within a year of filing. Factors will be … More
Q: What Is Redemption?
A: Redemption allows an individual debtor (not a partnership or a corporation) to keep tangible, personal property intended primarily for personal, family, or household … More