What are bankruptcy exemptions? Bankruptcy exemptions in the bankruptcy code are assets that you get to keep and are protected from your creditors and the trustee. After your bankruptcy, you are allowed to keep all of your exempt assets. If you are married, your bankruptcy exemptions are doubled. Each person gets their own bankruptcy exemptions.
What happens if I exceed my bankruptcy exemptions?
If you exceed your exemptions, you can still keep your assets that exceed your bankruptcy exemptions, but you are required to pay the trustee the amount you are over your bankruptcy exemptions. there are two ways to pay the trustee back. First is the full amount to the chapter 7 trustee. They will do limited payment plans. The second way to pay the trustee it by filing a chapter 13 bankruptcy and getting a payment plan of 36 to 60 months.
What are my bankruptcy exemptions?
11 US Code Section 522 states your bankruptcy exemptions as follows:
(d) The following property may be exempted under subsection (b)(2) of this section:
(1) The debtor’s aggregate interest, not to exceed $23,675 1 in value, in real property or personal property that the debtor or a dependent of the debtor uses as a residence, in a cooperative that owns property that the debtor or a dependent of the debtor uses as a residence, or in a burial plot for the debtor or a dependent of the debtor.
(2) The debtor’s interest, not to exceed $3,775 1 in value, in one motor vehicle.
(3) The debtor’s interest, not to exceed $600 1 in value in any particular item or $12,625 1 in aggregate value, in household furnishings, household goods, wearing apparel, appliances, books, animals, crops, or musical instruments, that are held primarily for the personal, family, or household use of the debtor or a dependent of the debtor.
(4) The debtor’s aggregate interest, not to exceed $1,600 1 in value, in jewelry held primarily for the personal, family, or household use of the debtor or a dependent of the debtor.
(5) The debtor’s aggregate interest in any property, not to exceed in value $1,250 1 plus up to $11,850 1 of any unused amount of the exemption provided under paragraph (1) of this subsection.
(6) The debtor’s aggregate interest, not to exceed $2,375 1 in value, in any 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 owned by the debtor, other than a credit life insurance contract.
(8) The debtor’s aggregate interest, not to exceed in value $12,625 1 less any amount of property of the estate transferred in the manner specified in section 542(d) of this title, in any accrued dividend or interest under, or loan value of, any unmatured life insurance contract owned by the debtor under which the insured is the debtor or an individual of whom the debtor is a dependent.
(9) Professionally prescribed health aids for the debtor or a dependent of the debtor.
(10) The debtor’s right to receive–
(A) a social security benefit, unemployment compensation, or a local public assistance benefit;
(B) a veterans’ benefit;
(C) a disability, illness, or unemployment benefit;
(D) alimony, support, or separate maintenance, to the extent reasonably necessary for the support of the debtor and any dependent of the debtor;
(E) a payment under a stock bonus, pension, profitsharing, annuity, or similar plan or contract on account of illness, disability, death, age, or length of service, to the extent reasonably necessary for the support of the debtor and any dependent of the debtor, unless–
(i) such plan or contract was established by or under the auspices of an insider that employed the debtor at the time the debtor’s rights under such plan or contract arose;
(ii) such payment is on account of age or length of service; and
(iii) such plan or contract does not qualify under section 401(a) , 403(a) , 403(b) , or 408 of the Internal Revenue Code of 1986 .
(11) The debtor’s right to receive, or property that is traceable to–
(A) an award under a crime victim’s reparation law;
(B) a payment on account of the wrongful death of an individual of whom the debtor was a dependent, to the extent reasonably necessary for the support of the debtor and any dependent of the debtor;
(C) a payment under a life insurance contract that insured the life of an individual of whom the debtor was a dependent on the date of such individual’s death, to the extent reasonably necessary for the support of the debtor and any dependent of the debtor;
(D) a payment, not to exceed $23,675, 1 on account of personal bodily injury, not including pain and suffering or compensation for actual pecuniary loss, of the debtor or an individual of whom the debtor is a dependent; or
(E) a payment in compensation of loss of future earnings of the debtor or an individual of whom the debtor is or was a dependent, to the extent reasonably necessary for the support of the debtor and any dependent of the debtor.
(12) Retirement funds to the extent that those funds are in a fund or account that is exempt from taxation under section 401 , 403 , 408 , 408A , 414 , 457 , or 501(a) of the Internal Revenue Code of 1986.
Are my bankruptcy exemptions different in chapter 7 bankruptcy and chapter 13 bankruptcy
No. Chapter 7 and chapter 13 bankruptcy have the same exemptions.
How do I get started with my bankruptcy?
Getting started is easy. Just pickup the phone and call our office. You will speak to a bankruptcy attorney immediately.
KRUPP LAW OFFICES PC
Grand Rapids Bankruptcy Lawyer
161 Ottawa NW Suite 404
Grand Rapids MI 49503
616-459-6636