What's it mean?
Some of your property is protected from creditors in bankruptcy. It is called an "exempt" property and you can keep it. The law says what property is "exempt".
Each bankruptcy case is unique & needs to be evaluated according to the debtor’s financial circumstance and severity of their situation. Contact a bankruptcy attorney.
- In most cases, the debtor doesn’t have to give up any property or personal possessions.
- Law allows a comfortable amount of property exemptions.
- Law automatically protects exempted property during & after closing of your bankruptcy case.
- Exempted property allows you to keep not only the property but also any equity you may have built up. Equity means the difference between the value of the exempted property and the remaining debt.
Within Exemptions - Number of Different Items to Be Aware Of
- Each state has the right to determine which kind of exemption, federal bankruptcy exemption or state exemption should be applied to you.
- Some states allow you to make the choice between the two.
- In most cases, federal bankruptcy exemption would prove to be better for person filing for bankruptcy.
- There are cases when state exemptions might be more beneficial. Be sure you are acting on the advices of an expert.
- To understand which type of property exemption would apply to you, be sure you talk to a qualified bankruptcy attorney. Each process carries legal implications so you need to make sure you are doing the right things.