If I file Chapter 7 Bankruptcy, what property may I keep?

2011-08-13T09:59:00.000-07:00

If I file Chapter 7 Bankruptcy, what property may I keep?

The bankruptcy laws, 11 U.S.C. 522, allows a debtor to exempt, or keep certain property, listed below. If you are married and filing jointly, you may double all of the federal bankruptcy exemptions listed below. For example, you may claim a homestead exemption of $43,250 (which is double the listed homestead exemption amount of $21,625).
Homestead:
522(d)(1), (5) - Real property, including mobile homes and co-ops, or burial plots up to $21,625. Unused portion of homestead, up to $10,825, may be used for other property, this is also part of what is called the “wildcard” exemption, and identified below.

Personal Property:
522(d)(2) - Motor vehicle up to $3,450.
522(d)(3) - Animals, crops, clothing, appliances and furnishings, books, household goods, and musical instruments up to $550 per item, and up to $11,525 total.
522(d)(4) - Jewelry up to $1,450.
522(d)(9) - Health aids.
522(d)(11)(B) - Wrongful death recovery for person you depended upon. 522(d)(11)(D) - Personal injury recovery up to $21,625 except for pain and suffering or for pecuniary loss.
522(d)(11)(E) - Lost earnings payments.
Pensions:
522(b)(3)(C) - Tax exempt retirement accounts (including 401(k)s, 403(b)s, profit-sharing and money purchase plans, SEP and SIMPLE IRAs, and defined benefit plans).

522(b)(3)(C)(n) - IRAS and Roth IRAs to $1,171,650.

Public Benefits:

522(d)(10)(A) - Public assistance, Social Security, Veteran’s benefits, Unemployment Compensation.

522(d)(11)(A) - Crime victim’s compensation.

Tools of Trade:

522(d)(6) - Implements, books and tools of trade, up to $2,175.

Alimony and Child Support:

522(d)(10)(D) - Alimony and child support needed for support.

Insurance:

522(d)(7) - Unmatured life insurance policy except credit insurance.

522(d)(8) - Life insurance policy with loan value up to $11,525.

522(d)(10)( C ) - Disability, unemployment or illness benefits.

522(d)(11)( C ) - Life insurance payments for a person you depended on, which you need for support.

Wildcard:

522(d)(5) - $1,150 of any property, and unused portion of homestead up to $10,825.

Call Robert J. Sayfie, P.C. at 616-774-9244 or visit www.sayfie.com.