If you are struggling with crippling debts, it is likely that you will be evaluating your possible options for getting relief. One of the most obvious options when dealing with debt is to file for bankruptcy. The nature of a bankruptcy filing depends on the bankruptcy chapter that you file for.
Many people worry that in filing for bankruptcy, they will be set to lose their home or their car as a result. This can be a huge reason why people decide not to take action, because they do not want to change their life circumstances to such a drastic degree. If you are worried about losing your car in a bankruptcy filing, it is important that you first learn more about how bankruptcy exemptions work.
Federal bankruptcy exemptions
When filing for bankruptcy, you will be subject to federal exemptions. These exemptions mean that each individual bankruptcy filing will be able to benefit. Therefore, if both you and your spouse apply for bankruptcy, the exemption amounts that you will be able to benefit from will double.
Federal bankruptcy exemptions allow for a debtor to exempt up to $3,250 in one vehicle. This vehicle must be used for personal transportation in order to be exempt. If you and your spouse file for bankruptcy, you will be able to exempt up to $6,500 over two vehicles.
If you are considering whether bankruptcy in Washington is the right choice for your financial situation, it is important that you take the time to research the specifics of the law. You should also look into the other exemption possibilities.