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Bankruptcy Exemption Laws?
The best way to file your personal bankruptcy is to
have it done Full Service for you.
NOT
online software!!!
Bankruptcy Exemption Laws Explained
Index:
Chapter 7
bankruptcy laws
Chapter 13
bankruptcy laws
Property and
Exemptions
Structure of bankruptcy laws
Case
administration
Types of
bankruptcy
How to file
bankruptcy
Introduction
Bankruptcy exemptions determine which assets you can keep after filing
bankruptcy. many people worry about losing their house or car or other property
when they file bankruptcy. To answer this concern, bankruptcy laws contain what
are known as exemptions,
Bankruptcy exemptions set limits for most category of assets that determine
what you can keep and what must be sold by the bankruptcy trustee to pay
creditors with.
Exemptions vary from state to state.
The Structure of Bankruptcy Exemption Laws
Only real persons are entitled to assets after a Chapter 7 bankruptcy, so the
bankruptcy exemption laws discussed here apply only to individual filers.
On the fairness issue, imagine for a moment that you are a small time contractor
and that you have just completed a remodeling job for a homeowner. You were just
informed that the homeowner has filed bankruptcy and that you were not going to
get any money for your work. You would certainly consider it unfair if the court
allowed the homeowner to keep $120,000 in his bank account and a $58,000
Mercedes that was paid for while wiping the $1,700 that you were owed. This
fictional scenario obviates the need for laws governing what amount of property
a person can keep after filing bankruptcy. Any amounts above the limits could be
converted to cash and paid to the creditors. That is what
bankruptcy exemption laws are about. Bankruptcy exemption laws specify
limits for most categories of assets that you can keep after filing bankruptcy
and it is the job of the trustee to liquidate any amounts above those limits for
the benefit of the creditors.
Exemptions apply to the equity that you have in property, therefore, it is
important that you understand how to calculate it. In a nutshell, the equity
that you have in an asset is amount that you would normally keep if you sold the
asset and paid off any loans secured by the asset.
What if you owe more on the property than its value? The equity in that case
would be zero since negative equity is not a useful concept when dealing with
bankruptcy exemptions.
Federal and State Bankruptcy Exemption Laws
Federal bankruptcy law provides for two types of bankruptcy exemptions,
Federal exemptions and state exemptions. The law also leaves it up to each
state to decide which bankruptcy exemption laws its residents can use, that is,
state or Federal. This flexibility has major consequences for debtors because
the amount of equity you can keep varies greatly from one state to the other.
For most debtors, the choice between Federal and
State bankruptcy exemptions have already been made for you by your state.
Some states use Federal bankruptcy exemptions only, some give you the option to
use either and some restrict you to the state bankruptcy exemptions. If you live
in California, you get to choose between two sets of state bankruptcy exemption
laws. It is these bankruptcy exemption laws that enable a person to file
bankruptcy and lose nothing, that is, if they properly
apply the bankruptcy exemptions to their property. This is the compelling
reason why you should have your bankruptcy prepared for you by professionals
rather than trying to do it yourself with forms, kits or software.
Exemption laws are broken down according to the classification of the assets.
Each law prescribes the exemption limits for each type of property, for example,
real estate, motor vehicles, household goods, pension plans, bank accounts, etc.
The
actual exemption laws are beyond the scope of this site. There are a number
of excellent sources for the detailed state by state exemptions laws and they
include your state's code.
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Before You Start Filing Personal Bankruptcy and Before you select a
Bankruptcy lawyer, Compare And See Why We are Better
In any business, the best companies do not mind if you check out the
competition first, because they know you will better appreciate their services if
you have shopped around. The same applies with us.
If you insist on filing personal bankruptcy with a
personal bankruptcy software then the best ones are
Guaranteed Bankruptcy and
Verant
Bankruptcy.
Filing online without bankruptcy lawyer with them is no where as easy as filing personal bankruptcy online with
our service because we are full service and they are not.
They charge between $170 and $200 but that does not amount to much. Why? Because in the end, it
is still only
bankruptcy software and that means, do-it-alone.
You are not a personal bankruptcy expert, and no
bankruptcy software is going to change
that.
A better comparison for filing chapter 7 or chapter 13 bankruptcy online would be
DebtorAid
Personal Bankruptcy and
Zmt
Personal Bankruptcy
Filing, the
two most popular Full-Service
online bankruptcy
filing companies. You can decide to hire a bankruptcy lawyer.
We offer services similar to theirs but for a lot less.
 We
do not sell blank forms.
We do
not sell software.
We do
not sell kits.
We do
not sell templates.
Full Details
To learn more about filing bankruptcy
online with our services, click any of the links below.
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