exemption Tag

07 Jul Massachusetts Protections of Cash Value Life Insurance

The Massachusetts laws protecting cash value life insurance might as well be written in Middle English. Theysimply cannot be understood byanyone except the most persistent of us.Luckily, some recent court decisions help us find our way. Back in2007, I expressed appreciation to U.S. Bankruptcy Judge Henry...

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24 Nov If You Own A Home Then You Are Probably Upside Down In The Property.

In an article this week featured in Default Servicing, Carrie Bay reports that one in every four homes is upside down. Upside down means you have absolutely no equity in your home. For example the principal amount due and owing on the mortgage is $100,000 but the property value is only worth $90,000. In this example your property value would have to regain $10,000.01 to have any amount of equity. The five heaviest states that are suffering these upside down properties are Arizona, California, Florida, Nevada and Michigan. However the upside down nature of the real estate market can be felt nationwide. Inflated appraisals, the recession and over extended debtors provided the perfect environment for the bottom to fall out in housing market. As of today the crisis is not only hitting us every day folk but for the first time it is hitting the rich and/or famous.
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30 Sep Can I Keep My Non-Exempt Assets in Bankruptcy?

If you file a Chapter 7 Bankruptcy, the Chapter 7 trustee will determine if the items you own (your assets) are exempt.  To the extent that they are exempt, they are protected from the reach of the trustee and your creditors.  Exemptions are determined by the Federal Bankruptcy Law or the Exemption laws of your state. In New York State, for example, you can exempt $50,000 of equity in your home, $2,400 in your vehicle, $600 in tools, and $2,500 in household goods.  If, say, your vehicle is worth $6,000 with nothing owed against it, then the Chapter 7 trustee can take the vehicle, sell it, give you your $2,400 exempt value, and use the rest to pay towards your creditors. If you file Chapter 7 and want to keep an asset that is worth more than the applicable exemption, you usually can, if you offer to buy out the trustee’s interest. 
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