If you are considering filing for bankruptcy, chances are you have already done some research on the subject. Whether you are working with an attorney or attempting to go it alone, you have probably questioned which property you will be able to keep and which property you may have to give up. Fortunately, bankruptcy law allows individuals to keep much of their property through exemptions. Although exempt property is commonly referred to as necessities of modern life, if organized properly a bankruptcy petition may allow individuals to keep more than just the necessities.
Bankruptcy law recognizes the concerns filers have with losing their property. It also recognizes that stripping an individual of all of their belongings is counterproductive to the mission of relieving debt. It is for these reasons that bankruptcy law allows individuals to exempt the propertythey require for daily life. A home to live in, a vehicle to get to work in and personal belongings are all property that may be considered necessities.
When individuals work through a property schedule or discuss property exemptions with an attorney, they may be concerned with the limits set by bankruptcy law. When property is considered exempt, it is usually only exempt up to a certain monetary value. For vehicles and homes, the value considered is in terms of equity. Although many of these limitations may be considered extremely low, it is important for spouses filing together to understand that they may be able to count their exempt property separate, meaning they can double up on the equity exempt.
Bankruptcy paperwork can be extremely confusing. In order to exercise the full value of exempt property provided by bankruptcy law, petitioners may wish to work with an attorney. With their help, individuals may be able to better protect their property from seizure or loss.