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What does it mean in bankruptcy if a state doesn't allow federal exemptions?
Wiki User
∙ 13y ago
That means your state doesnt allow a debtor to use federal exemptions in order to keep items/property of a certain value. If your state doesnt allow federal exemptions, then the state will have their "own" BK exemptions.
Wiki User
∙ 13y ago
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Are there any personal exemptions of property in a bankruptcy action?
If you mean exemptions of personal property, as opposed to real estate, yes, but they depend on state exemptions or federal exemptions in states that allow a choice of state or federal exemptions. Consult a local bankruptcy lawyer for specifics for your state.
What can you own when you go bankrupt?
If filing a federal bankruptcy, federal BK exemptions apply. If filing a state bankruptcy, the state's exemptions apply. A few states allow the debtor to choose either state or federal filing whichever is the most beneficial to the debtor. Bankruptcy Action, http://www.bankruptcyaction.com
Will you lose your car in Chapter 7 bankruptcy if car is paid for?
If you own your car then you'll be able to keep it if its value falls under your state's vehicle exemption amount. The state exemptions vary widely and some use the federal exemption. The federal bankruptcy exemptions allow you to exempt up to $3,675 of equity in your car.
What happens to your paid off car after filing bankruptcy?
If your car's value cannot be exempted, it goes to the trustee to auction off and the net proceeds used to pay his fee and the balance distributed pro rata to the unsecured creditors. The exemptions are determined by state law, which may allow using the federal exemptions. Check with a local bankruptcy lawyer or go to your jurisdiction's bankruptcy court website.
Can you file Chapter 7 and keep your house and car?
Whether you can keep your house and car depend on how much equity is in your house and car and the available bankruptcy exemptions within your state. If the bankruptcy exemptions allow you to protect the equity in these assets then you should be able to keep them in bankruptcy.
How much personal property can you keep in bankruptcy?
It depends on your state. A few states allow you to choose the federal or the state exemptions, whichever is better for you. Homestead exemptions have gotten a lot more complicated since the changes. See the link for more specific information for your state.http://www.exemptionsexpress.com/
May I keep my home if I file bankruptcy?
If it has some equity but not more than the exemption, and if you are current on your mortgage payments. It may also depend on your state homestead laws. Bankruptcy is a Federal Court action and has nothing to do with State Homestead Laws! Equity is irrelevant to whether you can keep your house. It may affect whether you want to reaffirm the mortgages or not. Bankruptcy law specifically allows states to require their exemptions. Most states require you to use state exemption laws, including state homestead exemptions. A handful of states allow you to choose federal or state exemption laws.
What is a Spousal Waiver of 703.140b exemptions?
I WOULD LIKE TO KNOW THE WORDING THAT GOES INTO THE SPOUSAL WAIVER. The "Spousal Waiver of 703.140b exemptions" that I am referring to in this answer is actually called the "Mutual waiver of right to claim state exemptions other than those provided in California Code of Civil Procedure 703.140(b), during pendency of bankruptcy case." It is a document that is signed by married couples when one spouse wants to file bankruptcy in California individually (and not jointly with their spouse) and they want to use the 703.140b exemptions. (This waiver is certainly used in the southern district where I practice). Exemptions are the things that allow you to keep property in a bankruptcy. Without exemptions your property would be taken and sold by the Trustee to satisfy your debts. There are two sets of exemptions in California. One set is called the "non-bankruptcy exemptions" and this is the set that contains the homestead exemptions. These are listed under CCP (Code of Civil Procedure) 704. If you don't own a home or if you don't have equity in your home then most people would choose the 703.140(b) exemptions when filing a bankruptcy because the 703 exemptions contain the very generous "wildcard" exemption. The wildcard (modeled after the federal exemption statutes) allows you to keep any type of property at all (even cash) with a value up to approximately $20,000. (Check for the exact amount at the time you are considering filing bankruptcy). The spousal waiver is necessary in California because both spouses must agree on which set of exemptions they will both take together. If they don't choose or if they can't agree on which exemptions they want then they get the non-bankruptcy 704 homestead exemptions by default. They would both then lose the wildcard. By signing the Waiver both spouses waive their right to claim any state exemptions other than those provided in 703.140(b) during the pendency of their chapter 7 bankruptcy. That means that if they sign then the agree to use the 703 exemptions (wildcard) and they waive or give up their right to use the 704 homestead exemption. In my experience most chapter 7 bankruptcy filers want this set of exemptions so most couples sign the document and they get their wildcard exemption which they must now share. The wording of the waiver comes from CCP 703.140(a)(2) so check out that section of the law to see where it came from but the effect of it is as I described above. For more bankruptcy information check out my website and my blog at www.farquharlaw.com.
Can states propose bills to decrease the amount of exemptions they allow or can they only propose bills to increase the amount of exemptions?
A state legislature can enact laws increasing or decreasing exemption amounts, add exemptions or delete exemptions that have already been established. Most laws both state and federal cannot usually be enforced retroactively.
What can you keep in bankruptcy?
When you file bankruptcy, you are required to fill out quite a few bankruptcy papers. Among these are Schedule C, which is a form where you list the property you are claiming should be exempt (meaning you get to keep it).Both federal and state laws provide exemptions for certain property that a debtor is allowed to claim as exempt. What property is eligible for exemption status varies from state-to-state; however, some states allow you to choose whether to use the federal exemptions or your state's exemptions. If federal exemptions allow you to keep more property than your state's exemptions, then you should opt for federal, provided your state allows it (not all states allow you to choose between federal and state exemptions).The following states DO ALLOW you to use the federal bankruptcy exemptions if you want: Arkansas, Connecticut, Washington, D.C., Hawaii, Massachusetts, Michigan, Minnesota, New Jersey, New Mexico, Pennsylvania, Rhode Island, South Carolina, Texas, Vermont, Washington, and Wisconsin.The following states DO NOT ALLOW you to use the federal bankruptcy exemptions: Alaska, Arizona, California, Colorado, Delaware, Florida, Georgia, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, South Dakota, Tennessee, Utah, Virginia, West Virginia, and Wyoming. If you do not use the federal exemptions (either by choice or requirement), you are also allowed to use the federal non-bankruptcy exemptions.What property is exempt under federal law?Remember that only 15 states and Washington, D.C. allow you to use the federal bankruptcy exemptions (see above). These exemptions can be doubled if you are filing bankruptcy jointly with your spouse --Personal and Real Property:(1) Household: Up to $425.00 per item not to exceed a total of $8,625.00 (includes animals, appliances, books, crops, furnishings, household goods, clothing, musical instruments)(2) Jewelry: Up to $1,075.00(3) Vehicles: Up to $2,575.00(4) Work tools (implements, books and tools of trade): Up to $1,625.00(5) Health aides (wheelchair, etc.): Unlimited(6) Burial plot: Up to $16,500.00 (in lieu of real estate exemption)(7) Real estate (house, co-op or mobile home): Up to $16,150.00(8) Any property: Up to $8,075.00 of unused portion of real estate exemptionWages, Pensions, Recoveries and Benefits:(1) Wages: None(2) Wrongful death funds: Amount needed for support(3) Personal injury funds: Up to $16,500.00 (excluding that for pain and suffering or pecuniary loss)(4) Lost earnings payments: Unlimited amount(5) Retirement benefits: Amount needed for support(6) Alimony / child support: Amount needed for support(7) Unemployment compensation: Unlimited amount(8) Veterans benefits: Unlimited amount(9) Social security benefits: Unlimited amount(10) Public assistance: Unlimited amount(11) Crime victims compensation: Unlimited amountInsurance:(1) Disability: Unlimited amount(2) Unemployment benefits: Unlimited amount(3) Unmatured life insurance: Unlimited amount(4) Life insurance policy loan value, dividends or interest: Up to $8,625(5) Life insurance proceeds: Amount needed for supportWhat property is exempt under state laws?In general, most states allow you to keep much of your personal property, particularly that which has little or no value. You can even keep collateralized property in certain circumstances (of course, you have to reaffirm the debt).Personal property includes tools that you use to earn a living (although there are limits on this); your clothing; and all of your household goods. As to your income, usually about 75% of your wages, and all of your unemployment and welfare benefits, worker's compensation, pensions, and insurance benefits are exempt. Most states allow you to double the amount of the exemption if you're married, but not all states, so make sure your state allows this before doing any calculations.
If my girlfriend files for bankruptcy can I keep house?
This question implies you and your girlfriend own the house together in some way. If there is no equity in the house (it is worth less or as much as is owed on any mortgages) and the mortgage(s) is (are) current, there should be no problem.If there is equity and the ownership is in equal shares (joint tenancy) she or you will have to pay the trustee half of the equity that cannot be exempted. Exemptions depend on state law. Some states allow you to choose state or federal exemptions. Most require their own exemptions.You should consult a good bankruptcy lawyer in your area, since there are many technical legal issues involved.
What will they take if you declare bankruptcy?
It's really more what you can keep...what is exempt from being taken:When you file bankruptcy, you are required to fill out quite a few bankruptcy papers. Among these are Schedule C, which is a form where you list the property you are claiming should be exempt (meaning you get to keep it).Both federal and state laws provide exemptions for certain property that a debtor is allowed to claim as exempt. What property is eligible for exemption status varies from state-to-state; however, some states allow you to choose whether to use the federal exemptions or your state's exemptions. If federal exemptions allow you to keep more property than your state's exemptions, then you should opt for federal, provided your state allows it (not all states allow you to choose between federal and state exemptions).The following states DO ALLOW you to use the federal bankruptcy exemptions if you want: Arkansas, Connecticut, Washington, D.C., Hawaii, Massachusetts, Michigan, Minnesota, New Jersey, New Mexico, Pennsylvania, Rhode Island, South Carolina, Texas, Vermont, Washington, and Wisconsin.The following states DO NOT ALLOW you to use the federal bankruptcy exemptions: Alaska, Arizona, California, Colorado, Delaware, Florida, Georgia, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, South Dakota, Tennessee, Utah, Virginia, West Virginia, and Wyoming. If you do not use the federal exemptions (either by choice or requirement), you are also allowed to use the federal non-bankruptcy exemptions.What property is exempt under federal law?Remember that only 15 states and Washington, D.C. allow you to use the federal bankruptcy exemptions (see above). These exemptions can be doubled if you are filing bankruptcy jointly with your spouse --Personal and Real Property:(1) Household: Up to $425.00 per item not to exceed a total of $8,625.00 (includes animals, appliances, books, crops, furnishings, household goods, clothing, musical instruments)(2) Jewelry: Up to $1,075.00(3) Vehicles: Up to $2,575.00(4) Work tools (implements, books and tools of trade): Up to $1,625.00(5) Health aides (wheelchair, etc.): Unlimited(6) Burial plot: Up to $16,500.00 (in lieu of real estate exemption)(7) Real estate (house, co-op or mobile home): Up to $16,150.00(8) Any property: Up to $8,075.00 of unused portion of real estate exemptionWages, Pensions, Recoveries and Benefits:(1) Wages: None(2) Wrongful death funds: Amount needed for support(3) Personal injury funds: Up to $16,500.00 (excluding that for pain and suffering or pecuniary loss)(4) Lost earnings payments: Unlimited amount(5) Retirement benefits: Amount needed for support(6) Alimony / child support: Amount needed for support(7) Unemployment compensation: Unlimited amount(8) Veterans benefits: Unlimited amount(9) Social security benefits: Unlimited amount(10) Public assistance: Unlimited amount(11) Crime victims compensation: Unlimited amountInsurance:(1) Disability: Unlimited amount(2) Unemployment benefits: Unlimited amount(3) Unmatured life insurance: Unlimited amount(4) Life insurance policy loan value, dividends or interest: Up to $8,625(5) Life insurance proceeds: Amount needed for supportWhat property is exempt under state laws?In general, most states allow you to keep much of your personal property, particularly that which has little or no value. You can even keep collateralized property in certain circumstances (of course, you have to reaffirm the debt).Personal property includes tools that you use to earn a living (although there are limits on this); your clothing; and all of your household goods. As to your income, usually about 75% of your wages, and all of your unemployment and welfare benefits, worker's compensation, pensions, and insurance benefits are exempt. Most states allow you to double the amount of the exemption if you're married, but not all states, so make sure your state allows this before doing any calculations.
