What are the Federal Bankruptcy Exemptions?

When you file for bankruptcy in Michigan, you must own either  real property, personal property or both. For example If you own a house mean you own a real property. If you own a car, cash, checking , saving account, tools, clothing and etc  mean you own personal property. The bankruptcy code allows to exempt certain property and keep them.

WHAT EXEMPTIONS ARE OFFERED UNDER FEDERAL BANKRUPTCY LAWS?

Federal bankruptcy exemptions are generally more generous, except for the homestead and vehicle exemptions. The federal homestead exemption is only $22,975 or $45,950 for a married couple filing jointly. Likewise, the federal vehicle exemption is only $3,675, with no provision to increase the exemption for the disabled. On the other hand, the exemption for personal injury claims is much greater under the federal exemptions —$22,975 under federal law. The most attractive feature of the federal exemptions is the more generous “wildcard” exemption, which can be used to protect any asset and apply up to $11,850 to any other property.

Under federal rule, you can exempt the following:

• $23,675 of home equity and property
• $3,775 for your car or truck
• $12,625 total value (up to $600 per item) on household furnishings, appliances, animals, crops, clothes, books and musical instruments
• $12,625 in loan value, accrued dividends, or interest in a life insurance policy.
• $2,375 for tools of the trade including implements and books
• $1,600 in jewelry value
• $23,675 for personal injury claims, except for pain and suffering
• Any compensation for wrongful death decisions or criminal restitution you were awarded
• Any alimony or child support you receive
• Welfare and Social Security income

Contact us today to determine which set of exemptions are applicable to you.

It is important for you to talk to our Detroit experienced bankruptcy attorney at BankruptcyTrack.com to determine what property will be exempt. To keep more of your property, you might want to discuss filing for Chapter 13 bankruptcy. In most cases, people who file for Chapter 7 bankruptcy have more exempt property than they realize and lose very little. To learn more contact us  today to schedule your free consultation by calling us at (248) 281-6299. or contacting us online for your free consultation.