ANSWERS: 1
  • Bankruptcy exemptions are provided by state law. The details vary according to each state's laws, but the general principles remain the same from state to state.

    Generally

    Every state provides exemptions that cover the basics in life, including homes, cars, some personal property, and household furnishings.

    Homes

    All states provide a homestead exemption, but the amount of the exemption varies from state to state. Generally, the homestead exemption ranges from $20,000 to over $200,000.

    Cars

    Every state provides an exemption for at least one, and sometimes more, personal car. Again, the amount varies from state to state but generally ranges from $2,000 to $10,000.

    Household Furnishings

    All states allow an exemption for basic household necessities and furnishings. This includes couches, beds, tools, insurance, and other miscellaneous items, the details of which vary from state to state.

    Wild Card

    Several states provide a wild card exemption, some up to $20,000. The wild card exemption allows you to claim whatever you want up to the amount of the exemption. For example, if your state has a $20,000 wild card exemption, you can keep your truck worth $20,000 or you can keep your boat worth $20,000, or whatever you want.

    Source:

    "Nolo's The New Bankruptcy"; Stephen Elias, J.D.; 2009

Copyright 2023, Wired Ivy, LLC

Answerbag | Terms of Service | Privacy Policy