Q. What can I do if I have non-exempt property?
One option is file your bankruptcy case under Chapter 13 which effectually allows you increase the amount of your exemptions by making deferred cash payments to a Chapter 13 Trustee that at least equals the non-exempt value of your property.

Q. Is my home exempt property?
Most states have homestead laws that allow you to take an exemption in your home. The value of the homestead exemption varies from state to state. Some states such as Texas and Florida have unlimited homestead exemptions. New York has a large homestead exemption that will exempt most homes.

Q. Is my pension exempt property?
Yes. All employer created pension plans and most IRA's are exempt from reach of your creditors in bankruptcy. This means that the bankruptcy court will always allow you to keep the full amount of your pension or your retirement account that acrues because of age or length of service.

Q. Is my income exempt property?
Yes! A chapter 7 trustee cannot take or levy on your income to satisfy your debts. This is true in all cases and when you receive your discharge under chapter 7 the debt is gone for good and cannot be enforced or renewed by creditors.

Q. Which states exemptions apply to me?
Usually the Federal Bankruptcy exemptions apply to your case. Bankruptcy law gives states the right to opt out of the Federal Bankruptcy exemptions and use their own State Law exemptions. In that case the exemptions of the state where you resided for the two years immediately preceding the filing apply

Q. Can I keep my car if I file for bankruptcy?
Yes! The laws regarding motor vehicles vary from state to state, but all states have exemptions in motor vehicles. Most states have additional exemptions called "wildcard" exemptions which can be applied to any property including cars if you happen to own a car that's worth more than the standard exemption amount.

Q. Can I keep my boat and my motorcycle?
States that have "wildcard exemptions" usually have enough exemption room to keep items such as boats and motorcycles however this is not always the case. Consult with us about your options.

Q. How do the creditors get paid?
In most bankruptcies the creditors will not get paid. They will get discharged by the routine administration of your case and the debts owed to them will be eliminated for good. This is part of the risk of doing business and the public policy of the Federal Government to allow people to opt out of their debts through bankruptcy.

Q. Will bankruptcy stop a foreclosure?
Chapter 7 or Chapter 13 will halt a foreclosure. Chapter 13 is the appropriate Chapter for someone who is seeking the help of the bankruptcy court in curing the underlying problem of arrears or lien stripping multiple mortgages. Anyone facing foreclosure is well advised to talk to a bankruptcy attorney now as recent changes in the bankruptcy laws make eave of foreclosure filings problematical.