What is a bankruptcy exemption?
A San Jose bankruptcy lawyers helps consumers answer: What is a bankruptcy exemption?
When an individual files for bankruptcy protection under any available chapter of bankruptcy, all of their assets are transferred to the bankruptcy estate. The bankruptcy estate is a temporary place where the debtor’s assets are stored. No actual transfer of assets occurs; it is more a constructive event.
Once the assets are transferred to the estate, the debtor elects bankruptcy exemptions for each asset to ensure that he/she does not lose their property. The bankruptcy exemptions are created, and governed, by federal law; however, the federal government has given the power to the states to create their own bankruptcy exemptions modeled after the federal governments. California is one of those states who have chosen to create their own bankruptcy exemptions, and they are much healthier than the federal government’s bankruptcy exemptions.
Some of the major bankruptcy exemptions include a homestead exemption, a vehicle exemption, clothing and jewelry exemptions, pension/IRA exemptions, and household goods exemptions. Most of the bankruptcy exemptions have a dollar limit at which they apply. In a nutshell, a bankruptcy exemption is the way to protect your assets when filing bankruptcy.
If you have questions regarding Bankruptcy in San Jose please contact us at 408.279.2288 for a free consultation or visit www.bkanswers.com and we can connect you with one of our experienced San Jose Bankruptcy Attorneys. After you have spoken with one of our downtown San Jose bankruptcy attorneys, we can schedule you for a free face to face appointment in an office location nearest you. Our team of San Jose Bankruptcy Lawyers can assist you with all aspects of your bankruptcy or bankruptcy litigation case. If you have questions about filing a Chapter 7 bankruptcy, a Chapter 11 bankruptcy, a Chapter 13 bankruptcy, or would like to learn more about bankruptcy litigation, legal debt settlement, mortgage modification, lien stripping, cram down, stopping a foreclosure, wage garnishment, asset protection, discharging a debt, etc. we can help! We have bankruptcy attorneys located throughout California and Oregon who can assist you with all of your debt resolution questions. Please feel free to complete our free online bankruptcy evaluation and we can quickly determine if you are a qualified candidate for bankruptcy. We look forward to hearing from you, San Jose and the South Bay!
