Bankruptcy Exemptions

Property Exempt from Bankruptcy Seizure Varies by State

If we were to claim bankruptcy, what do we get to keep?

Cora-Lee

It depends on where you live and what debts you choose to reaffirm.

If you want to keep your house and car, keep up the payments and reaffirm the debt. [If either are jointly owned and the co-owner does not go bankrupt, this might also protect the asset, but you still have to keep up the payments, if they are not already paid for.]

See Chapter Seven for a list of federal bankruptcy exemptions. Many states have exemptions that are more generous and the filer is allowed to choose which law is to apply to his bankruptcy application.

Individual retirement accounts are exempt.

I suggest you consult a bankruptcy expert in your area who can list your state's exemptions and help you choose which law is best to apply in your circumstances.

For a consultation with a local bankruptcy attorney, click here.