If you are considering filing for bankruptcy in the state of Washington, you may be concerned about having to face a decrease in quality of life and losing the assets that have sentimental value. While the process of bankruptcy is something that takes determination and sacrifice, it usually helps people far more than it hinders them.
It is important that you take the time to understand where federal law stands in regard to bankruptcy exemptions. This will help you learn more about what assets you can keep throughout the entire bankruptcy process.
What are bankruptcy exemptions?
Bankruptcy exemptions refer to the types and the values of assets that are legally allowed to be kept instead of liquidated through the process of bankruptcy. These exemptions are applied to individuals, which means that if a married couple files for bankruptcy, the exemption values can be doubled.
How much are the federal bankruptcy exemptions for different asset types?
Predictably, the biggest exemption applies to homesteads, granting each individual bankruptcy filing an exemption $23,675.
Household goods are defined as any individual items with a value of $600 or less. Household items with a collective value of up to $12,625 can be exempted from a bankruptcy filing.
Additionally, tools relating to work or industry can be exempted up to the value of $2,375, and jewelry up to the value of $1,600 is exempt.
The values of federal bankruptcy exemptions are set to be adjusted in April 2019. If you are interested in the ways that bankruptcy could give you a fresh start, it is important that you take action.