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Chapter 7 bankruptcy is commonly referred to as “liquidation” bankruptcy. It cancels debt entirely in the course of approximately three months and is an attractive option for many people considering bankruptcy. The down side for many is that filing for Chapter 7 means that any non-exempt belongings will be liquidated to distribute among creditors in order to pay off debts. When you file for Chapter 7, it is critical to know what exemptions will be included. Clearly understanding your options can help you make the right decision. Since exemptions differ from the state and federal laws, it is recommended to clarify your state’s laws before filing. Here are some sample exemptions.
States have an exemption on homesteads for individuals filing for Chapter 7 bankruptcy. The way to determine what state to use for your exemption is by looking at where you lived for the 730 days before filing. If you didn’t live in a single state for the past two years, you can determine your state by looking at the past 180 days and see where you lived for the majority of that time. If you are ineligible for state exemptions, you can take federal exemptions.
On the federal level, exemptions include a Homestead exemption of $21,625, a jewelry exemption of $1,450, a motor vehicle exemption of $3,450, an exemption of $2,175 that covers tools of the trade and including books and other equipment used for work, plus an exemption of $550 per item in any household goods up to a total of $11,525.
For the state of California, bankruptcy exemptions include homestead exemptions, personal property including appliances, furnishings, clothing, building materials for home repair, burial plots, health aids, jewelry and heirlooms, motor vehicles, personal injury and wrongful death causes of action and recoveries needed for support. Additionally, insurance, property of business partnerships, pensions and retirement income – including IRAs and Keoghs, tools of the trade and public benefits – are all exempt.
If you are seriously considering filing for bankruptcy in the Los Angeles area and want to find out more information about bankruptcy exemptions, contact the firm that focuses exclusively on California bankruptcy laws: Borowitz and Clark. Every day, the Los Angeles bankruptcy lawyers at Borowitz and Clark help people save their homes, their cars, and wipe out their debts. The Los Angeles bankruptcy lawyers at Borowitz and Clark can help you understand your options and make the best decision. Unlike many firms, they never leave a paralegal or secretary in charge of a case. That’s why their cases succeed at such a high rate—even higher than many other bankruptcy firms. For a free consultation, contact a qualified Los Angeles bankruptcy lawyers at Borowitz and Clark toll-free at 800-509-3200, or visit www.blclaw.com.
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Brian Reed. los angeles bankruptcy lawyers – Contact the law office of Borowitz & Clark, experienced bankruptcy attorneys who take your case from start to finish.
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