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Bankruptcy Exemptions Archives

Bankruptcy exemptions: Will I lose my home?

If you have been considering bankruptcy, you're probably not in the most peaceful mindset. You're probably swimming in debt, getting bills constantly in the mail and receiving constant, harassing telephone calls to your cellphone, to your home phone and even at work. In other words, you're feeling overwhelmed in more ways than one and you just want it to stop.

What Chapter 7 bankruptcy exemptions can I qualify for?

Part of a bankruptcy lawyer's job when representing you in Chapter 7 proceedings involves getting you qualified for as many exemptions as possible. This will allow you to avoid the liquidation of different assets, so that you can keep them and continue to use them.

Bankruptcy and your car: Will you get to keep it?

We love our possessions, and when it comes to many of them, we have a practical need to keep them. It's due to the fear of needing to liquidate all of one's property that a lot of Washington residents will avoid the bankruptcy process until the last possible moment. However, the longer you wait, the deeper into debt you may get and the more difficult and time consuming your bankruptcy process can become.

Is your child's bank account at risk if you file bankruptcy?

Working with your minor child to open a savings account and manage his or her money is a good thing, but what happens to that account if you ever have to file bankruptcy? The good news is that your child's account is probably exempt and can't be seized by the bankruptcy trustee to pay off debts. As with anything related to bankruptcy, the details do matter, though, so it's important to consult with your bankruptcy attorney to understand if your child's accounts are safe.

Understanding mortgage reinstatements

If you are dealing with a debt crisis, chances are you've fallen behind on some of your payments. Many times, households skip the mortgage payment one month because those funds can be used to stave off several other accounts. This tactic can quickly backfire, though, because once you start missing mortgage payments it can be very difficult to catch up.

Understanding the wild card exemption for Chapter 7

When you file Chapter 7 bankruptcy, the bankruptcy trustee is tasked with liquidating many of your assets and using the funds raised to make payments to your creditors. But that doesn't mean you give up everything you own to pay off debt -- the point of bankruptcy is to help you get out of the debt situation while also leaving you in a viable situation for the future. As such, the courts provide exemptions that let you keep certain personal items, a vehicle necessary for daily life and traveling to school or work, and, often, your home.

Why is some property exempt during bankruptcy?

Some property is exempt during bankruptcy, which means that it is not taken by the bankruptcy court and liquidated in order to make payments to creditors as part of the bankruptcy estate. The reason exemptions exist is to ensure that the bankruptcy process has the impact it should. Bankruptcy is meant to help debtors seek a legal way out of crushing debt scenarios while also making some payment to creditors. Taking every single thing a person owned -- particularly things required for daily life -- would have an opposite affect. The person would be left destitute and have to get into debt again to pick up the pieces.

Life insurance payouts and bankruptcy: No easy answer

Life insurance policies might be relevant to bankruptcy cases in a number of ways and unfortunately, an easy answer about how life insurance values of payout relate to creditors isn't available. The truth is that the relationship between life insurance and bankruptcy depends heavily on state law, the individual circumstances of the bankruptcy case and the type of life insurance policy in question.

What personal items are protected from garnishment?

The state of Washington provides for legal protection of certain personal items from garnishment and other forms of debt collection. For example, the personal clothing on anyone within a family is protected up to a value of $3,500. The value limitation is made to make some valuable items, such as jewelry or furs, available for garnishment.

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