What are the exceptions from bankruptcy?

Bankruptcy exceptions are the amounts and assets that the person is entitled to maintain when submitting personal bankruptcy. These contributions are provided at federal and state levels. The purpose of the exceptions is to ensure that the individual is able to maintain a basic standard of living so that he can remain independently maintained.

At the federal level in the United States, the government provides the following basic exceptions.

1. The debtor is entitled to keep up to $ 20,200 (USD) in his house. Any property must be paid to the creditors. They can also maintain a home that is awarded at $ 20,200 or less.
2. Life insurance with a value, in collected dividends or interest in the amount of $ 9,850.
3 to $ 475 USD for an item in any household, up to a total of $ 9,850. Household goods include furniture, appliances, clothing, etc.
4. Up to $ 1,225 in the value of jewelry.
5. A motor vehicle worth $ 3,225 or less.
6. Any payment of compensation for harm to $ 18,450.
7. Business tools such as books and equipment up to $ 1,850.
8. A wild card that covers up to $ 925 USD of any type of property.
9. If there is an unused part of the homestead up to $ 10,125, it can be used for any property.

Each state has its own list of bankruptcy exceptions that are used in addition to federal values. Exceptions from the bankruptcy you can use are based on which state you lived two years before bankruptcy. If you lived in several countries during this time, the state you spend most of your time is the one that is used.

At the federal level, some types of pension accounts are included in bankruptcy exceptions. Employee contributions to the Act on Employee Revenue (ERISA) Qualified Pension Plans, Delayed Compensacken Plans, Tax Delayed Annuits and Health Insurance Plans are exempted.

by the onlyOther funds to which bankruptcy is subject to educational pension accounts or qualified state teaching programs. The funds must be stored at least 365 days before bankruptcy. The stored amounts must fall within the limits specified in the Internal Income Act and benefit the child or grandchild.

The granted contributions are designed to allow minimum standard of living and apply irrespective of the chapter the debtor submits for bankruptcy under. The other north is the state, the higher the exceptions from bankruptcy. This adjustment is based on the need to get more clothes and equipment to keep mobility during the winter so that the debtor can continue to work.