Why Are Exemptions Relevant to My Chapter 7 Bankruptcy Case?
Exemptions are extremely important in personal bankruptcy cases, and especially in Chapter 7 cases where a debtor’s non-exempt assets will be liquidated as part of the bankruptcy process. If you are in the early stages of considering a Chapter 7 bankruptcy filing or planning for one, you may have come across references to exemptions, and to non-exempt assets, and you may not be certain about what exemptions are, or how they will be relevant to your personal Chapter 7 case. In short, in a Chapter 7 liquidation bankruptcy filed by an individual or married couple, exemptions allow the debtor to retain assets while non-exempt assets are liquidated so that creditors can be repaid.
Our South Florida bankruptcy attorneys can tell you more about the relevance of exemptions to your bankruptcy case and explain why you should discuss exemptions in detail with your bankruptcy lawyer prior to filing.
What Are Exemptions?
Exemptions identify exempt assets in a bankruptcy case. When a debtor files for personal bankruptcy in Florida, they are required to apply exemptions that exist under Florida law. There are also federal exemptions, but Florida does not allow a debtor to choose between state and federal exemptions (as some states do). Instead, only Florida exemptions will apply. As your bankruptcy lawyer can explain, Florida law does incorporate some federal exemptions so that you can exempt certain retirement assets, for example.
Florida exemptions are identified under Chapter 222 of the Florida Statutes.
How Exemptions Become Relevant to Your Case
With assistance from your bankruptcy lawyer, you should identify all exemptions that will allow you to “exempt” assets you own from liquidation in your Chapter 7 case — from equity in your home to equity in your motor vehicle to certain savings accounts and tangible personal property. There are many different types of exemptions that may apply to your case.
Then, in your relevant bankruptcy schedules, you will identify the relevant exemptions you are claiming. None of your assets that are “exempt” will be liquidated in your bankruptcy — these are all assets that you are free to keep and still have all eligible debts discharged in your Chapter 7 case. Your bankruptcy attorney can ensure that you claim all relevant exemptions so that you can retain the most property possible even when your non-exempt assets will be liquidated as part of the Chapter 7 bankruptcy process.
Contact a West Palm Beach Bankruptcy Attorney Today to Learn More About Exemptions in Your Personal Chapter 7 Case
If you are considering a Chapter 7 bankruptcy filing as an individual or married couple, exemptions will be crucial to your bankruptcy filing. As we discussed above, there are a wide range of exemptions available under the Florida Statutes, and certain federal exemptions incorporated into Florida personal bankruptcy filings. To find out more about using exemptions to keep a significant amount of your property in your Chapter 7 case, you should get in touch with one of the experienced West Palm Beach bankruptcy lawyers at Kelley Kaplan Delaney & Eller, PLLC. A personal bankruptcy attorney at our firm can speak with you today about your Chapter 7 eligibility and the specific exemptions that you can claim in your South Florida bankruptcy case.
Source:
leg.state.fl.us/statutes/index.cfm?App_mode=Display_Statute&URL=0200-0299/0222/0222.html
