Bankruptcy Exemptions Protect The Debtor

Each state has bankruptcy exemptions that are there to allow a debtor get on his feet again. There are also federal laws that establish a minimum amount of exempt property in a personal bankruptcy. If you file for bankruptcy protection, make sure to check and see what items and limits are established for your state. If you know that eventually you will have to file bankruptcy, knowing the exemptions in advance can help you plan the proceeding much easier.

Bankruptcy exemptions are provided to keep as much of your property in your ownership during the proceeding itself. A person can legally keep property that is declared exempt. In some cases, you may also buy property back from the Trustee that has been declared non-exempt. Both your real and personal property becomes the property of the bankruptcy estate as soon as you file in bankruptcy court. The Trustee will fill out a "Property Exemption Report", listing which is exempt or non-exempt. Make sure to read this report thoroughly. If an error is on the report, you have 15 days to have it corrected.

Here are some basic bankruptcy exemptions.

This listing is only a partial list of the federal bankruptcy exemptions in the United State Code. Make sure to get a complete list of the federal and also look up your state's laws regarding bankruptcy exemptions. Double these amounts if you are married and both filing bankruptcy, which should be the case.

• Homestead exemption on your real property of $18,450.
• Life insurance loan value to $9,250.
• Alimony and child support received for supporting dependent children.
• Retirement benefits, Social Security, and Pension plans
• Tools and equipment for your job to $1,850

The bankruptcy exemptions listed above are only a guide to help you determine what may or may not be involved in your particular bankruptcy case. Check with your attorney for more specific details.