Explaining Federal Exemptions In Bankruptcy
The bankruptcy laws were recently changed and federal legislation enacted by Congress. The new laws governing bankruptcy set a standard, which benefits the creditors. Although Congress did allow some states the option to create their own laws governing federal exemptions in bankruptcy laws. The choice between federal or state guidelines in done in sixteen states.
The states that follow the federal guidelines are:
Arkansas New Mexico
Connecticut Pennsylvania
Rhode Island District of Columbia
South Carolina Hawaii
Massachusetts Washington
Wisconsin Vermont
Minnesota New Jersey
Texas Michigan
When you think about the exemptions, you have to include the value of the property today, not the value when you bought the asset. If you are married and filing jointly this value doubles.
Federal exemptions in bankruptcy laws are a touchy subject and since the changes have occurred, many do not understand the bankruptcy laws anymore. They have become a bit more complex.
Some of the federal exemptions in bankruptcy include the following:
• The equity in your primary home is exempt up to seventeen thousand four hundred dollars. You may use up to eight thousand in home equity for other property including a cemetery plot.
• You can claim exemption for pension and retirement plans that is needed for support.
• Life insurance worth ninety-three hundred dollars, disability payments, and life insurance you pay for another person and any insurance contracts are covered under the federal exemptions in bankruptcy.
• Any benefits you get for public assistance including unemployment benefits, and monies received from crimes victims.
The other federal exemptions in bankruptcy include:
• Pet, animals and crops
• Clothing and up to eleven hundred dollars in jewelry
• Books and household goods
• Appliances and furnishings
• Musical instruments and a car valued up to twenty-seven hundred dollars
• Any personal injury payments up to seventeen thousand four hundred dollars except what was for pain and suffering
• Alimony and support payments
You can also find more info on Filing Personal Bankruptcy and Avoid Bankruptcy. Filingpersonalbankruptcyhelp.com is a comprehensive resource to get help in Bankruptcy.
Article Source: http://EzineArticles.com/?expert=Wade_Robins
Saturday, July 7, 2007
How To Determine When Chapter 7 Bankruptcy Is Best
When many of us hear about bankruptcy, we think of the classic state of bankruptcy in the game of Monopoly. But bankruptcy is not a game. Rather, it is an entirely serious state of financial affairs that cannot be taken lightly. The bankruptcy laws are very complex, and even have bankruptcy experts arguing about the real meaning and intent behind the complicated rules and procedures that have been put into place.
There are various kinds of bankruptcy, both for personal and business bankruptcies, and each type is different. The various types are designed to strike a balance between meeting the needs of the creditors without doing more damage than what is absolutely necessary for the person who is filing bankruptcy. This article will outline the basics of the type of bankruptcy commonly known as Chapter 7 Bankruptcy, which is one of the more popular forms of bankruptcy.
Before we get into that, be aware that filing for bankruptcy is not a decision that should be taken lightly. The huge red flag stating that you have filed bankruptcy will appear on your credit reports for the next 7 to 10 years, and will haunt you with being denied credit as you try to rebuild yourself or your business, as well as being required to pay higher interest rates on credit for those creditors who are willing to "take a risk" with you. There are multiple alternatives to filing for bankruptcy, and each option should be fully considered before you decide that bankruptcy is your only or best option.
Chapter 7 bankruptcy is the type of bankruptcy also known as liquidation, where the person filing bankruptcy turns over all their assets to be sold (typically at an auction), and the resulting money is used to pay off or partially pay off all creditors. The reason this can be attractive to some people is that if the person filing bankruptcy has few assets to be sold off, so the remaining debts are discharged over a period of three to six months, giving that person a "quick start" to rebuilding their life with no debts.
If you have a larger amount of assets that could be sold to pay your debts, you may wish to consider a different form of bankruptcy, since most of those assets will no longer be available to you after you file bankruptcy and the proceedings move forward. Also, be aware that the bankruptcy laws vary, sometimes widely, from state to state, so the bankruptcy laws in your state may be different, and may even not allow you to file for this type of bankruptcy.
Your best bet – again, after investigating all possible options and alternatives to following through with filing bankruptcy – is to meet with a bankruptcy lawyer who is very familiar with the bankruptcy laws in your state, or the state in which you are considering filing. A good bankruptcy lawyer can look at your specific situation and make recommendations for your options, alternatives, and if appropriate, the type of bankruptcy that you should file in order to provide the most amount of benefit to you. There is a free bankruptcy evaluation form at our web site that will allow you to talk with a bankruptcy attorney who is local to you and familiar with the laws in your state.
Do not file bankruptcy in a vacuum. Make sure you know what you are getting into and what the ramifications will be. The bankruptcy laws are complex enough where doing it all yourself is not a good option, and you would be best advised to get some guidance from someone who knows the laws in your state.
For more information and resources about Chapter 7 Bankruptcy and to get a free bankruptcy evaluation from a lawyer local to you, please visit our web site at http://www.bankruptcy-data.com
Article Source: http://EzineArticles.com/?expert=Jon_Arnold
When many of us hear about bankruptcy, we think of the classic state of bankruptcy in the game of Monopoly. But bankruptcy is not a game. Rather, it is an entirely serious state of financial affairs that cannot be taken lightly. The bankruptcy laws are very complex, and even have bankruptcy experts arguing about the real meaning and intent behind the complicated rules and procedures that have been put into place.
There are various kinds of bankruptcy, both for personal and business bankruptcies, and each type is different. The various types are designed to strike a balance between meeting the needs of the creditors without doing more damage than what is absolutely necessary for the person who is filing bankruptcy. This article will outline the basics of the type of bankruptcy commonly known as Chapter 7 Bankruptcy, which is one of the more popular forms of bankruptcy.
Before we get into that, be aware that filing for bankruptcy is not a decision that should be taken lightly. The huge red flag stating that you have filed bankruptcy will appear on your credit reports for the next 7 to 10 years, and will haunt you with being denied credit as you try to rebuild yourself or your business, as well as being required to pay higher interest rates on credit for those creditors who are willing to "take a risk" with you. There are multiple alternatives to filing for bankruptcy, and each option should be fully considered before you decide that bankruptcy is your only or best option.
Chapter 7 bankruptcy is the type of bankruptcy also known as liquidation, where the person filing bankruptcy turns over all their assets to be sold (typically at an auction), and the resulting money is used to pay off or partially pay off all creditors. The reason this can be attractive to some people is that if the person filing bankruptcy has few assets to be sold off, so the remaining debts are discharged over a period of three to six months, giving that person a "quick start" to rebuilding their life with no debts.
If you have a larger amount of assets that could be sold to pay your debts, you may wish to consider a different form of bankruptcy, since most of those assets will no longer be available to you after you file bankruptcy and the proceedings move forward. Also, be aware that the bankruptcy laws vary, sometimes widely, from state to state, so the bankruptcy laws in your state may be different, and may even not allow you to file for this type of bankruptcy.
Your best bet – again, after investigating all possible options and alternatives to following through with filing bankruptcy – is to meet with a bankruptcy lawyer who is very familiar with the bankruptcy laws in your state, or the state in which you are considering filing. A good bankruptcy lawyer can look at your specific situation and make recommendations for your options, alternatives, and if appropriate, the type of bankruptcy that you should file in order to provide the most amount of benefit to you. There is a free bankruptcy evaluation form at our web site that will allow you to talk with a bankruptcy attorney who is local to you and familiar with the laws in your state.
Do not file bankruptcy in a vacuum. Make sure you know what you are getting into and what the ramifications will be. The bankruptcy laws are complex enough where doing it all yourself is not a good option, and you would be best advised to get some guidance from someone who knows the laws in your state.
For more information and resources about Chapter 7 Bankruptcy and to get a free bankruptcy evaluation from a lawyer local to you, please visit our web site at http://www.bankruptcy-data.com
Article Source: http://EzineArticles.com/?expert=Jon_Arnold
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