When filing for bankruptcy you need to work with a bankruptcy lawyer that is an expert at understanding the laws, exemptions, and nuances associated with these types of proceedings. Bankruptcy can be the solution you are looking for in order to get out from under a mountain of debt and to live your life freely once again. Getting constant debt collection calls is no fun and can even be extremely stressful. For many people, this is a reason enough to declare bankruptcy and a skilled attorney can help.
It is important to understand that although bankruptcy sounds simple, there are many laws that come into play when going this route. For example, just because you are allowed to declare bankruptcy doesn’t mean that a judge has to approve it or that they have to approve your specific plan. There is no guarantee that they will, making it important to work with an expert.
Once you have filed for bankruptcy, there are certain exemptions that you should be aware of. An exemption is something that can be excluded from your assets while filing. A California bankruptcy lawyer can provide you with more specifics but in the meantime here is what you need to know.
- Your Home. Your primary residence can include a physical stick built house, mobile home, RV, boat or wherever you happen to live. According to the law you can have $75,000 in equity in your home and that equity can be exempt from liquidation in the bankruptcy. If you are married, both spouses can claim the full exemption for a total exemption of $150,000. The rules can change based on certain groups of people for example retirees or the disabled. If you claim an exemption and the total equity in your home is at that amount or less, the trustee will not sell your home, and you can keep it while continuing to make the payments on it. If your equity exceeds the exemption amount, they may force you to sell your home.
- Personal Property. Generally speaking, your furniture, appliances, clothing, food, and things necessary for living are exempted from the bankruptcy. Jewelry is only exempt up to $5,000 which cannot be doubled by the spouse like the home equity can.
- Bank Deposits. If you receive social security payments, $2,000 of your bank account balance can be exempt.
- Cars. You can have up to $1,900 in equity in your car. If it is over that amount, the vehicle may be liquidated by the trustee. Your bankruptcy lawyer can also argue the merits as to why you need to keep it. This may include an argument for your need to get to work or pick up kids from school. At times, you may be allowed to keep it but have to pay the amount over the allotted equity exemption.
There are also rules for how much of your wages you are entitled to keep along with pension funds and retirement. Hiring a bankruptcy lawyer is important for ensuring that you can keep the maximum amount of your income, assets, and retirement funds. To learn more call The Travis Law Firm today.
