Bankruptcy Exemptions
What property can I keep if I file for bankruptcy? That is one of the most common questions we hear at B&B Law Group. As a law firm concentrating in bankruptcy law, we understand that people are concerned about the effect bankruptcy will have on their property.
Many of the people who contact our office are afraid that they will lose their vehicle, furniture, computer or personal property that has sentimental value. While we must meet with you personally to provide a more comprehensive assessment of bankruptcy's impact on your property, we have provided some general information below about bankruptcy exemptions and the impact of Chapter 7 and Chapter 13 bankruptcy on an individual's property.
If you are struggling with debt and want to learn more about bankruptcy, contact B&B Law Group in Lutz, Florida. Our experienced bankruptcy lawyers serve clients throughout the greater Tampa Bay area.
Chapter 7 Bankruptcy
In Chapter 7, you will turnover any non-exempt property to the Bankruptcy Estate in exchange for your debts being discharged. Florida has opted out of the federal exemptions contained in 11 U.S.C. §522(d). In Florida, you are permitted to claim as exempt only that property which is exempt under state law and under federal laws other than 11 U.S.C. §522(d). If you qualify for Florida exemptions you may exempt/protect the following property from the Bankruptcy Estate:
- All of the equity in your homestead (in most instances);
- $1,000.00 of equity in your car;
- $1,000.00 of equity in personal property (i.e. cash, furniture, electronics, jewelry, etc..);
- $4,000 of additional equity in personal property if no homestead exemption is claimed; and
- Certain benefits such as social security, unemployment compensation, workers' compensation, disability, veterans' benefits, public assistance, and most pensions/retirement benefits, regardless of the amount.
* The exemptions are doubled when a married couple files together.
When calculating the equity in property, you must assign the property its current fair market value, and then subtract the amount of any lien remaining on the property.
Bankruptcy exemptions protect certain property from liquidation in a Chapter 7 bankruptcy. However, bankruptcy exemptions do not affect a secured creditor's right to repossess property. If you owe a debt on secured property, you may consider entering into a debt reaffirmation agreement (an agreement reached separately with a creditor to pay a particular debt).
Chapter 13 Bankruptcy
In a Chapter 13 case, you can keep all of your property if your plan meets the requirements of the U.S. Bankruptcy Code. Chapter 13 is not a liquidation chapter. It is a repayment chapter.
The Trustee is not going to take any of your property in a Chapter 13. Instead, you will submit a repayment plan in which you will commit any disposable income to the repayment of your unsecured debts for a three or five year commitment period. However, if you intend to keep property secured as collateral, like your home or a car, then you will have to pay those secured debts, except in cases where we can strip a second mortgage or cramdown a vehicle.
Contact Our Tampa Bankruptcy Attorneys
To schedule a free consultation with an experienced bankruptcy attorney, contact B&B Law Group at 813-333-9583 or contact us by e-mail.
