Thursday, November 27, 2008

Bankruptcy Exemptions - You Can Keep Your Hat On

You can keep many things of value despite filing for bankruptcy relief. These are "exemptions." See Bankruptcy Schedule C "Property Claimed As Exempt"

You have to choose between
1) federal exemptions and

2) state exemptions to see which is more favorable for your particular circumstances.

California has two "systems" of exemptions that are mutually exclusive. Pick one set or the other, but you cannot "cherry pick." California and other states have a "wild card" exemption that will be attractive to many.

Federal law makes social security benefits exempt in bankruptcy or from creditors claims in state courts

(c) copyright 2008 New Dawn Law

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