Bankruptcy Exemptions

Posted by on Dec 18, 2012 in Bankruptcy Law, Business Law | 0 comments

For individuals with overwhelming debt and financial pressures, bankruptcy protection is often one of the only available options for obtaining financial relief and getting back onto the path of financial solvency. However, bankruptcy has deeply negative connotations for many individuals. Most assume that, by filing for bankruptcy, they may lose everything that they’ve spent their lives working for, and that they’ll never be able to recover what they’ve lost. This is actually not the case however.

In reality, there are many different ways for debtors filing for bankruptcy to keep many of their most important belongings, making bankruptcy much less disruptive than many people believe it to be. One of the easiest ways to do this is through the use of various exemptions written into the bankruptcy code to help make it possible for those who pursue this type of legal protection to keep their lives intact.

Common Bankruptcy Exemptions

There are a number of different bankruptcy exemptions which an individual may pursue. However, a few stand out as being particularly common. These include the following:

* Homestead exemption – this allows homeowners to exempt a certain amount of equity in their homes from bankruptcy proceedings.
* Vehicle exemption – this allows vehicle owners to exempt a certain amount of equity in their vehicles.
* Wilcard exemption – this allows debtors to exempt a certain amount of any type of property they wish to keep.
* Pension exemption – this allows debtors to exempt most of their retirement savings from bankruptcy.

These are just some of the many different exemptions that debtors may be able to seek under bankruptcy proceedings. However, there are a number of other exemptions, which vary from state to state, that a debtor can use to protect certain property and assets during bankruptcy. Talk to a contract lawyer to learn more about what you can do to protect your property in bankruptcy.

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