Laws, like sausages, cease to inspire respect in proportion as we know how they are made. John Godfrey Saxe, Daily Cleveland Herald (29 March 1869).[1] Previously, I have outlined the exemptions available to Virginia debtors in bankruptcy – property that a debtor gets to keep from the trustee. They are, to say the least, not [...]
Exemptions In Bankruptcy
Gov. David Paterson has signed a bill that gives more protection to New Yorkers who file bankruptcy or who have been sued by bill collectors. The new law increases the exemptions that people can use to protect their property from forced sales by bankruptcy trustees and debt collectors. It also allows a choice between State [...]
Unusual situations often show up in bankruptcy court eventually. And sometimes they contain both humor and depression in equal measure. Recently the 8th Circuit Bankruptcy Appellate Panel was called upon to rule on whether a horse trailer could be a mobile home under Missouri law. The issue arose because the debtor who filed bankruptcy owned [...]
You can use your state exemptions to protect assets. If your state law permits, you can choose to use federal exemptions instead. Can you use both? The Massachusetts homestead will protect $500,000 of home equity. It protects your family, not just you. For example, your ownership interest is protected if your children reside in the home [...]
You want to protect all of your home, car, or other non-cash asset but exemptions are limited to fixed dollar amounts. The Supreme Court says you can. Exemptions are stated in fixed dollar amounts. Protecting your home can be difficult because it is hard to value. You do the best you can, but there’s always some risk that a trustee will get a [...]
Good planning for bankruptcy can save you money. Bad bankruptcy planning is fraud. Check out this post and this one too. Good bankruptcy planning can prepare you for your future. Bad bankruptcy planning can send you to jail. And no bankruptcy planning is almost as bad as bad bankruptcy planning. What is bankruptcy planning? [...]
