My client asked me this last week as we were going through her final papers for her Chapter 7 bankruptcy filing. I told her the easy way I think of them: property that is exempt from being liquidated by the case trustee. In my state of New Mexico, you generally can choose between using the [...]
exemptions
So you have no money. You”ve come to that realization. You’ve sat down and figured out your goals – you know where you want to go. So, what now? If you have nothing to lose, then you have nothing to lose by doing nothing. A valid option that can apply to some people is to [...]
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 [...]
Tenancy by the entireties, in many states, is one of the most valuable ways for debtors to retain, or exempt, property in bankruptcy. Because entireties property can only be alienated (a fancy word for transferred or sold) by both spouses acting together, only joint creditors of both spouses can attach it to satisfy their debts, [...]
When you file bankruptcy, you claim “exemptions” in property you wish to keep free of any claims of the bankruptcy trustee. And the “homestead” exemption–the exemption used to protect your home–is the most important exemption for many debtors. But what if your home is the movable kind? And I’m not just talking about mobile homes [...]
