What Assets Can You Keep After Bankruptcy?
Bankruptcy Exemptions:
Claiming exemptions in order to keep assets after bankruptcy is a standard part of eliminating debt through Chapter 7 or reorganizing debt through Chapter 13. At the law firm of Andrew Gebelt, we have helped many clients achieve a fresh start through bankruptcy, and we can do the same for you.
The first question many people have is what type of bankruptcy is right for them. It all depends on your personal goals, the level of debt you have, and whether you need to use bankruptcy to keep a home with a mortgage that has fallen behind.
For many, Chapter 7 proves to be the easier way to get rid of debt and get their financial lives back on track. To discuss the means test and related matters with a Burien bankruptcy exemptions lawyer, call Andrew Gebelt at 425-398-2778. The initial consultation by telephone is free, and we are glad to do all of the paperwork for you to file bankruptcy.
Washington State Now Has A New Generous Homestead Exemption:
Homeowners in Washington now no longer have to fear losing their homes in bankruptcy even if they have built up substantial equity as long as they are living in that home when they file for bankruptcy. (Your home equity is the amount left over after you subtract the total of all your mortgages from the total amount your home could be sold for today.) If you have owned your home shorter than 40.5 months, then your home equity is exempt up to $189,050 in bankruptcy. If you have owned your home longer than 40.5 months, then your homestead equity can be even greater. For example, if you have owned your home for more than 40.5 months in Snohomish County, then your home equity is exempt in bankruptcy up to $676,900. And if you have owned your home for more than 40.5 months in King County, then your home equity is exempt in bankruptcy up to $838,300. Note: if you recently sold your previous home to move into your current home, the Bankruptcy Court will allow you to tack the two homeowning periods together to get past the 40.5 months as long as both homes are in Washington State and you are living in your home when you file for bankruptcy.
Most people get to keep exempt assets, which typically include:
•Tools used to do your job
•Household furniture, up to a certain value
•Personal car or truck, up to a certain value
•Jewelry, up to a certain value
•Household appliances
•Pensions including IRAs and 401ks
•Compensation won in a personal injury lawsuit
The Chapter 7 bankruptcy trustee may request that you turn over non-exempt assets to be sold to pay off debts, including:
•Expensive boats
•Fine art
•Extremely expensive cars or vacation homes
•High end recreational vehicles
But most people in Chapter 7 bankruptcy do not own expensive boats, fine art, extremely expensive paid off cars, vacation homes, or paid-off high-end recreational vehicles. We are a debt relief agency. We help people file bankruptcy under the bankruptcy code.
Claiming exemptions in order to keep assets after bankruptcy is a standard part of eliminating debt through Chapter 7 or reorganizing debt through Chapter 13. At the law firm of Andrew Gebelt, we have helped many clients achieve a fresh start through bankruptcy, and we can do the same for you.
The first question many people have is what type of bankruptcy is right for them. It all depends on your personal goals, the level of debt you have, and whether you need to use bankruptcy to keep a home with a mortgage that has fallen behind.
For many, Chapter 7 proves to be the easier way to get rid of debt and get their financial lives back on track. To discuss the means test and related matters with a Burien bankruptcy exemptions lawyer, call Andrew Gebelt at 425-398-2778. The initial consultation by telephone is free, and we are glad to do all of the paperwork for you to file bankruptcy.
Washington State Now Has A New Generous Homestead Exemption:
Homeowners in Washington now no longer have to fear losing their homes in bankruptcy even if they have built up substantial equity as long as they are living in that home when they file for bankruptcy. (Your home equity is the amount left over after you subtract the total of all your mortgages from the total amount your home could be sold for today.) If you have owned your home shorter than 40.5 months, then your home equity is exempt up to $189,050 in bankruptcy. If you have owned your home longer than 40.5 months, then your homestead equity can be even greater. For example, if you have owned your home for more than 40.5 months in Snohomish County, then your home equity is exempt in bankruptcy up to $676,900. And if you have owned your home for more than 40.5 months in King County, then your home equity is exempt in bankruptcy up to $838,300. Note: if you recently sold your previous home to move into your current home, the Bankruptcy Court will allow you to tack the two homeowning periods together to get past the 40.5 months as long as both homes are in Washington State and you are living in your home when you file for bankruptcy.
Most people get to keep exempt assets, which typically include:
•Tools used to do your job
•Household furniture, up to a certain value
•Personal car or truck, up to a certain value
•Jewelry, up to a certain value
•Household appliances
•Pensions including IRAs and 401ks
•Compensation won in a personal injury lawsuit
The Chapter 7 bankruptcy trustee may request that you turn over non-exempt assets to be sold to pay off debts, including:
•Expensive boats
•Fine art
•Extremely expensive cars or vacation homes
•High end recreational vehicles
But most people in Chapter 7 bankruptcy do not own expensive boats, fine art, extremely expensive paid off cars, vacation homes, or paid-off high-end recreational vehicles. We are a debt relief agency. We help people file bankruptcy under the bankruptcy code.