The Bankruptcy Laws and regulations are legislature that congress creates.
The laws were most recently updated or revised in 2005.
The revision set up a standard set of property a debtor can keep exempt from creditors in a bankruptcy petition.
The congress allows each state to decide whether they are going to use the federal exemption list or to create their own list.
The states that have chosen to follow the federal list of exemptions follows: Arkansas New Mexico Massachusetts Texas Connecticut Pennsylvania Michigan District of Columbia Rhode Island Washington Hawaii South Carolina Wisconsin Minnesota Vermont New Jersey In reviewing the various exemptions, the values represented are the value oruble the value of said assets.
Federal Exemptions [United States Bankruptcy Code 11 United States Code Sec.
522(d)]: include the following: oPrimary Residence - Equity in your home is exempt up to $17,450.
If you do not have that much equity in your home, you may apply up to $8,725 towards any other property or burial plot.
oPensions/Retirement Plans - Any ERISA-qualified pension plan benefits.
These must be required as support though oInsurance - Disability payments, life insurance payments (for persons who depend on debtor), life insurance policy with value less than $9,300 in dividends or interest and life insurance contracts.
oPublic Benefits - Exempt from bankruptcy include Social Security and Veteran Benefits, Unemployment Compensation, Public assistance and compensation as a crime victims.
oPersonal Property including pets, crops, personal clothing, books, household appliances, home furnishings, household goods, health aides, up to $1,150 in Jewelry, up to $425 per musical instruments, motor vehicles worth less than $2275, benefits from personal injury (up to $17,425 but excluding amounts designated for pain and suffering or financial loss) and wrongful death recoveries for person debtor depended on for support.
oMiscellaneous Expenses - Alimony or Child Wildcard - In addition to the specific exemptions previously mention,you can use a special $925 exemption of any property.
If you're in one of the sixteen states which recognize the Federal exemption statute, you can choose the more favorable exemption list.
It's also important to review states residency requirements for Bankruptcy filing, since a neighboring states statute might be more advantageous for you.