Bankruptcy exemptions are key players in both Chapter 7 and Chapter 13 bankruptcy even though, in each situation bankruptcy exemptions are used for different reasons. For example, Chapter 7 bankruptcy exemptions are put into place to decide how much property you are able to keep during the process, while Chapter 13 exemptions assist in lowering the cost of payment plans.
This article discusses what bankruptcy exemptions are and how they work for both Chapter 7 and Chapter 13 bankruptcy.
When you file Chapter 7 or Chapter 13 bankruptcy you are allowed to keep exempt property you own such as your home, car, certain personal belongings, pension, etc. All property that is deemed “non-exempt” the trustee is authorized to sell this property in an attempt to absolve any remaining debt.
When you file for bankruptcy in the United States, your exemptions are determined by the state in which you take up residency in. Each state exemption system is different and only 17 states allow you to choose between the state or federal exemption system, Florida is not one of them. As stated by National Bankruptcy Forum, the top five Florida bankruptcy exemptions are:
If you plan on hiring a Fort Myers bankruptcy attorney to handle your case, he or she will be able to assist you in determining what additional exemptions are available to you.
Bankruptcy exemptions are designed to assist you during your bankruptcy journey, no one wants to see all of the property you’ve worked so hard for over the years slip through your fingers. Additionally, neither the state nor the federal government wants to leave you with nothing once the process is over. Bankruptcy exemptions in both Chapter 7 and Chapter 13 have their individual benefits to help you get out of debt faster.
If you’re considering filing Chapter 7 or 13 bankruptcy it’s in your best interest to discuss your exemption options with a qualifted Fort Myers bankruptcy attorney. At Miller, Hollander & Jeda we can offer you experienced legal counsel for all of your bankruptcy questions. Contact us today, for a free consultation.