Bankruptcy Exemptions - what are they?

Many clients come in fearful they will be forced to give up everything they own in order to file bankruptcy. But that is far from the truth. In many cases consumer bankruptcy debtors can keep everything they own. The purpose of bankruptcy is to get people back on their feet ... not to leave them destitute. As a result, the law allows them to keep certain property through exemptions.


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I explain it as the law allows you to keep different "buckets" of property. The buckets will hold certain amounts of property for different types of property. For instance, the law gives you an exemption for furniture. The bucket for furniture and household goods will hold a little over $12,000 worth of household items. So we look at the value of the clients' furniture to see how much fits into that bucket. Most of the time everything fits in and they get to keep everything. The law provides buckets/exemptions for all types of property including equity in a house. It is a matter of analyzing the debtor's asset and sorting them into the buckets.

You do not lose all your property when you file bankruptcy. Exemptions help protect enough property to assist debtors get back on their feet. This is part of the protection provided through the bankruptcy laws.

If you want assistance, legal representation, or just want to know more about Mark Medvesky or Medvesky Law Office, LLC, check out our website at www.medveskylaw.com.

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