Bankruptcy: What can I keep? Part II
Last time I explained that you could keep your car and home in Bankruptcy, if you want, and depending on the type of Bankruptcy you file; but what other property can you keep? This is an important question because many people don't realize that it's a common situation for the Bankruptcy Trustee to force the sale of assets to pay creditors. For simplicity we are going to cover just a little about Federal Exemptions as opposed to State Exemptions.
You can exempt household goods such as furniture, clothing, appliances, and the like. The aggregate value that can be exempt is $10,775. Jewelry can be exempt up to $1350 as long as it is held for personal and family use. There is also a "wild card" or "any property" exemption. This is an additional $1,075 for property not already covered/exempt. There is another $2,025 exemption for "tools of trade".
You can also keep most Life Insurance policies as long as they don't have a cash value. Life insurance policies, which do have a cash value get complicated; but generally can be exempt up to the cash value of $10,775.
Many people have expensive health aids like wheel chairs/scooters, artificial limbs, even specially equipped vehicles. These can all be exempt and although there are gray areas, if it qualifies there is no dollar limit.
There are also exemptions for all kinds or retirement benefits and other rights to future income. This gets complicated and is too extensive for this blog entry. As you can see there is a lot to consider when filing a Bankruptcy. If you have further/specific questions contact us! Consultations are free.
