Under Bankruptcy Code Section 522(d), there are 12 types of property
can be claimed as exempt in states which have not "opted-out" of the
federal exemption scheme. The dollar amount of the exemptions can change periodically
depending on cost-of-living increases. They are as follows:
| 1).
| $
21,625 of equity in the debtor's principal residence
| | 2).
| $
3,450 of equity in an automobile
| | 3).
| The
debtor's interest, not to exceed $ 550 in value in any particular item, and up
to an aggregate of $ 10,825, of household goods, furnishings, wearing apparel,
books, animals, crops, appliances, musical instruments, which are held primarily
for the personal, family or household use of the debtor or his dependents
| | 4).
| $
1,450 worth of jewelry held primarily for the personal, family or household use
of the debtor or a dependent of the debtor
| | 5).
| Debtor's
interest in any property up to $ 1,150, plus any unused amount of the homestead
exemption of (1), above, but not to exceed $ 10,825
| | 6).
| $
2,175 worth of implements, professional books, or tools of the trade of the debtor
or the trade of a dependent of the debtor|
| | 7).
| Any
unmatured life insurance contract of the debtor
| | 8).
| $
11,525 in cash value in any life insurance policy of the debtor
| | 9).
| Any
professionally-prescribed health aids for the debtor or dependent of the debtor
| | 10).
| Debtor's
right to receive: social security, unemployment compensation, or welfare benefits;
veterans' benefits; disability, illness or unemployment benefits; alimony, maintenance
and support to the extent reasonably necessary for the support of the debtor and
his dependents; and debtor's right to payments under a pensions, profit-sharing,
or similar plan
| | 11).
| Debtor's
right to receive: an award under a crime victim reparations law; a payment on
account of wrongful death of whom the debtor was a dependent, to the extent needed
for support; payment under a life insurance policy on the life of a person of
whom the debtor was a dependent, to the extent necessary for support; a payment
not to exceed $ 21,625 on account of personal injury, not including pain and suffering
or compensation for actual pecuniary loss, of the debtor or a person of whom the
debtor is a dependent; and a payment in compensation of loss of future earnings
of the debtor or a person of whom debtor is a dependent, to the extent needed
for support
| | 12).
| Retirement
funds to the extent that they are exempt from federal taxation |
|
When
Exemption Laws of the State Apply?
Generally, the exemption laws of the state where the
bankruptcy petition is filed will apply. There is one exception: if
the debtor lived
in that state for less than 730 days prior to the filing, then the
laws of the state where the debtor resided in the 180-day period before
the 730-day period will apply. If the debtor ends up not meeting the
residency requirements for any state, then he can take the federal
exemptions under Section 522(d). This can be a very important consideration
in cases where the debtor has moved in the years leading up to the
bankruptcy case. A debtor should consult experienced
local bankruptcy counsel to advise him in this area.
Written by Henry Rendler
| |
Home
Search
Site
Filing
Bankruptcy
Cost
Advantages
Disadvantages
Strategies
- Automatic
Stay
- Avoiding
Powers
- Lien-stripping
- Race
to the
Courthouse
Discharge
of Debts
Exemptions
- Bankruptcy
Estate
- Federal
- Homestead
- Planning
Bankruptcy
Law
Business
Consumer
Taxes
Fraud
Types
of Bankruptcy
Chapter
7
Chapter
9
Chapter
11 Chapter
12 Chapter
13 Chapter
15
Debt
Advice
Avoiding
Bankruptcy
Debt
Consolidation
Bankruptcy
Alternatives
Life
after Bankruptcy
The
Court
US
Bankruptcy Courts
The
Trustee
341
Creditors Meeting
Find
Attorney by State
Selecting
an Attorney Attorneys
& Bankruptcy What You Should Know
Bankruptcy
Specialist
|