Understanding Exemptions and How They Work
Understanding Exemptions and How They Work
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Bankruptcy Exemptions - What Do I Keep When I File For Bankruptcy?
Bankruptcy exemptions determine what you get to keep during and after bankruptcy, including your home, car, retirement account, or personal belongings. But you'll have to comply with exemption rules. Find out which state exemption laws will apply in your bankruptcy case, or whether you can choose the federal bankruptcy exemptions instead.
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Exemptions in Chapter 13 Bankruptcy
In Chapter 13 bankruptcy, you can keep all of your property. However, you'll have to pay the value of any nonexempt property through your Chapter 13 repayment plan.
Federal Exemptions
Federal Exemptions
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Some states allow bankruptcy filers to use the federal bankruptcy exemptions to protect property in bankruptcy instead of state bankruptcy exemptions. You can use federal bankruptcy exemptions if you live in Alaska, Arkansas, Connecticut, District of Columbia, Hawaii, Kentucky, Massachusetts, Michigan, Minnesota, New Hampshire, New Jersey, New Mexico, New York, Oregon, Pennsylvania, Rhode Island, Texas, Vermont, Washington, or Wisconsin. Compare your state exemptions to the federal bankruptcy exemptions and decide whether the federal bankruptcy exemptions would be best for you.
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Federal Nonbankruptcy Exemptions
In Chapter 7 bankruptcy, exemptions determine what property you get to keep. In Chapter 13 bankruptcy, exemptions help determine how much you must pay to certain creditors through your Chapter 13 repayment plan. All states have a set of exemptions that you may use. Some states allow to use a list of federal bankruptcy exemptions instead.
Types of Bankruptcy Exemptions
Types of Bankruptcy Exemptions
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If you file for Chapter 7 bankruptcy, whether you can keep your home depends, in large part, on your state's homestead exemption.
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The Motor Vehicle Exemption in Chapter 7 Bankruptcy
If you file for Chapter 7 bankruptcy, you will most likely be able to exempt (protect) some equity in your car, van, truck, motorcycle, or other motor vehicle. If you can exempt enough equity, you'll be able to keep your car.
Valuing Your Property
Valuing Your Property
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How to Value Personal Property in Bankruptcy
When filing for bankruptcy, you must list of all of your personal property and provide a value for each item. In bankruptcy, "value" refers to an item's “replacement value” -- the price a retail merchant would charge given the age and condition of the property.
Bankruptcy Exemption Q&As
Bankruptcy Exemption Q&As
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Will I Lose My Checking or Savings Account if I File Bankruptcy?
If you file for Chapter 7 or Chapter 13 bankruptcy, will you be able to keep your savings, checking, or other bank accounts? The answer depends on what you mean by "keeping." While most banks won't close an account in good standing, you'll have to cover the balance with a bankruptcy exemption. Otherwise, you'll likely lose it. Other bankruptcy checking and savings account issues include losing funds to setoff and difficulties opening new accounts after a bankruptcy filing.
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What Happens to Investment Real Estate in Bankruptcy?
If you own property that you don't use as a residence, you might lose it if you file for Chapter 7 bankruptcy.
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If you file for Chapter 7 bankruptcy, whether you can keep your home depends, in large part, on your state's homestead exemption.
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How to File Bankruptcy and Keep Your Car
No one wants to lose a car in bankruptcy. Keeping your vehicle in bankruptcy will depend on the following: whether you file for Chapter 7 or Chapter 13 bankruptcy, if you’re behind on your car payment, and whether you can protect all of the vehicle equity with a bankruptcy exemption.
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Bankruptcy Exemptions - What Do I Keep When I File For Bankruptcy?
Bankruptcy exemptions determine what you get to keep during and after bankruptcy, including your home, car, retirement account, or personal belongings. But you'll have to comply with exemption rules. Find out which state exemption laws will apply in your bankruptcy case, or whether you can choose the federal bankruptcy exemptions instead.
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Will I Lose My Checking or Savings Account if I File Bankruptcy?
If you file for Chapter 7 or Chapter 13 bankruptcy, will you be able to keep your savings, checking, or other bank accounts? The answer depends on what you mean by "keeping." While most banks won't close an account in good standing, you'll have to cover the balance with a bankruptcy exemption. Otherwise, you'll likely lose it. Other bankruptcy checking and savings account issues include losing funds to setoff and difficulties opening new accounts after a bankruptcy filing.
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Is Your Pension and 401(k) Exempt in Bankruptcy?
If you have a pension or other retirement plan and you file for Chapter 7 bankruptcy, you can probably exempt at least some of your pension and protect it from the bankruptcy trustee.