The properties exemptions as mentioned under the Federal Bankruptcy Law and as it has been interpreted by the various states are different. However, you will be happy to know that most of the states have given you the liberty to choose federal exemptions along with the state specific exemptions. However, here, it is important for you to understand that this liberty does not mean that you can use only the federal exemptions and ignore the state specific exemptions altogether.
Filing bankruptcy as per the Federal Bankruptcy Law will allow you to get exemptions under the following ways:
Residential Properties Exemptions
The exemptible residential properties, as per the Federal Bankruptcy Law also include co-op or mobile home. The maximum amount exemptible under this category is seventeen thousand four hundred and fifty dollars. However, here you should also note that you can apply the unused portion of the residential properties up to the amount of 8725 dollars to any property.
Pension Fund Exemptions
The pension fund exemptions under the Federal Bankruptcy Law include only the ERISA-qualified benefits that the debtor needs for support.
Personal Property Exemptions
As per the Federal Bankruptcy Law, the personal properties exemptions are applicable in the following manner:
# If the debtor is eligible for any Personal injury recoveries, the bankruptcy court may allow him or her to exempt such amounts, but only up to the extent of 17,425 dollars.
# Motor vehicle exemptions include any number of cars or other vehicles, but only up to the amount of 2775 dollars.
# Other personal properties exemptions include household goods, furnishings, books, appliances, clothing, and crops, Animals etc, up to 9300 dollars in total. This amount also includes musical instruments. What is more, you should also note that you cannot exempt more than 425 dollars per item.
# The Federal Bankruptcy Law also allows you to exempt jewelry products up to the amount of 1150 dollars.
Public Benefits Exemptions
As per the Federal Bankruptcy Law, the public benefits exemptions include Veterans' benefits, Unemployment compensation, Social Security, Public assistance, and even Crime victims' compensation.
Wages Exemptions
It is important for you to keep in mind that the Federal Bankruptcy Law does not allow you any specific wages exemptions.
Wild Card Exemptions Are Allowed
Like many other state specific bankruptcy code, the federal court also allows the debtor some scope for wild card exemptions. Such exemptions include 925 dollars of any property. What is more, as you can note in the residential properties exemption section, you can also use 8725 dollars of any unused homestead exemption to be exempted under any other property.
Tools Of Trade Exemptions
Various books, implements and other tools of trade are also allowed to be exempted under the Federal Bankruptcy Law, but only up to the amount of 1750 dollars.
Filing Bankruptcy as per the Federal bankruptcy law will allow your property to be exempted in a different manner, in comparison to the state specific bankruptcy code exemptions. Bankruptcy court in most states allows you to use the state specific exemptions along with the federal exemptions. Therefore, it is always better to be informed regarding the various ways the properties exemptions have been interpreted as per the federal bankruptcy law.
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