What Assets Can I Keep In A Bankruptcy?
At the Law Offices of Jennifer LaRese, LLC, I handle Chapter 7 and Chapter 13 bankruptcies for clients in Southbury and throughout surrounding Connecticut communities.
Many of my clients worry that by filing for bankruptcy, they will lose all of their assets. Typically, this is far from the truth. In a Chapter 7 bankruptcy, the debtor’s assets are sold off and the proceeds distributed to creditors, but many assets are exempt.
Understanding Bankruptcy Exemptions
Under Connecticut bankruptcy laws, you may exempt the following property from seizure in a Chapter 7 bankruptcy.
- Your home, including up to $75,000 in equity per person (can be doubled if a married couple files jointly)
- Up to $3,500 of equity in a vehicle
- Personal property such as clothing, bedding, furniture and appliances
- Disability benefits
- Life insurance proceeds
- A wildcard exemption of $1,000 value in any property
Under current Federal bankruptcy laws, you may exempt certain property, including:
- Homestead exemption up to $25,150 ($50,300 if you are married and jointly filing)
- Up to $4,000 of equity in a vehicle
- Up to $13,400 in household goods
- Up to $1,700 in jewelry
- A wildcard exemption of $1,325 value in any property, plus up to $12,575 of unused real estate exemption
- Tax exempt retirement accounts
- Up to $1,362,800 IRAs and Roth IRAs
When you file, you have the right to choose either the Connecticut exemptions or the federal exemptions. In some cases, the Connecticut exemptions are more favorable, in some, the federal. Only with a full understanding of your assets, debts and overall financial picture can I advise you on which set of exemptions will best suit your purposes.
Remember, bankruptcy exemptions only come into play in a Chapter 7 bankruptcy. In Chapter 13 bankruptcy, the person who files typically does not lose any property at all.
Keeping Your House And Car
Of all the types of property people are concerned about losing in bankruptcy, homes and cars typically rise to the top of the list. In most cases, people who file for bankruptcy get to keep these items. We will perform valuations for your property to ensure maximum use of all available exemptions for you.
Talk To A Lawyer About Keeping Your Property In A Bankruptcy
My firm is a debt relief agency. I help people file for bankruptcy relief under the Bankruptcy Code.