What are the Federal Bankruptcy exemptions?

large family home

One of the most common myths of filing for Bankruptcy is that the Court comes to your home and takes your possessions.  Not only is that a myth, but there are “Exempt Assets” that each family is allowed to keep when filing a Bankruptcy case.

If you file under the Federal Exemptions, each spouse may keep the following assets, depending on whether they own a house or not: 

●      A total of $12,625 in household goods.

●      $1600 in jewelry

●      $2,375 in items necessary for your job

●      $23,675 of home equity

●      $3,775 in car equity

●      $1,250 that can be applied to any property

●      Up to $1 million in IRA, 401(k) and protected pensions

●      All child support and alimony payments

Two spouses filing as a family can double these exemptions.  New York State also offers its own exemptions, with housing exemptions reaching $331,000.00.

When facing overwhelming debt and creditors, filing for bankruptcy protection while stripping off your credit card debt and bank lines of credit, and remaining with your home, household goods, life savings and retirement plans intact, is the most financially responsible action a family can take.

If you have questions about filing bankruptcy, give our firm a call today.

If you require the services of an experienced bankruptcy attorney, contact the Law Offices of Allen A. Kolber, Esq. today to schedule a consultation and discuss your options.