One of the most appealing things about pursuing a consumer bankruptcy case is that you may get protected from creditor intervention. Further, this may mean that your outstanding creditors are barred from taking some of your personal property for profit, otherwise known as your exempt assets. Without further introduction, please continue reading to learn more about exempt and non-exempt assets and how an experienced Rockland County Chapter 7 bankruptcy attorney at The Law Offices of Allen A. Kolber, Esq., P.C. can work to ensure you fully take advantage of this given opportunity.
What are exempt and non-exempt assets in bankruptcy?
As alluded to above, in your Chapter 7 bankruptcy case, your exempt assets may be considered the assets you, as the debtor, can keep in your possession. In other words, the United States Bankruptcy Code protects these assets from the claims of creditors if it is listed as exempt under federal bankruptcy law or the laws of your home state. On the other hand, as you may assume, your non-exempt assets may be the assets that your appointed bankruptcy trustee takes possession of to liquidate them and distribute these funds amongst creditors with whom you still have outstanding debts. Nonetheless, below are common examples of exempt and non-exempt assets that may be relevant to you:
- Exempt assets, according to New York State law:
- Equity in the home you live in up to a certain amount, depending on the county.
- Equity in your motor vehicle of up to $5,500 or $13,625 if it is equipped for your disability.
- Your pensions and retirement accounts, such as your 401ks and SIMPLE IRAs.
- Your personal property up to a certain amount, depending on its specific classification.
- Non-exempt assets, according to New York State law:
- Your second real estate property or vacation home.
- Your second motor vehicle, unless you are filing jointly.
- Your investment accounts, other than your retirement accounts.
- Your personal property that is classified as luxury items, such as high-end jewelry.
How can I make sure my eligible assets get exempted?
Once you fully understand what constitutes an exempt asset, you must carefully inventory all your possessions. You must then list all your eligible assets, which you wish to protect in your Chapter 7 bankruptcy proceedings, in the Schedule C form you file with the New York State Bankruptcy Court. Here, you must also disclose the accurate values of all these assets. For unique, complex, or otherwise significant assets, it may be in your best interest to hire an appraiser to assist you in estimating them. Ultimately, a failure to list an eligible asset or state its true value may mean a missed opportunity at maximum protection.
To conclude, if you require additional consulting, look no further than a skilled Rockland County bankruptcy attorney from The Law Offices of Allen A. Kolber, Esq., P.C. Schedule your initial consultation with us today.
