Exemptions in Yakima Bankruptcy

What can I keep when I declare bankruptcy?

In a chapter 7 bankruptcy case, you can keep all property which the law says is "exempt" from the claims of creditors. It is important to check the exemptions that are available in the state where you live. If you moved here from a different state within two years before your bankruptcy filing, you may be required to use the exemptions from the state where you lived just before the two-year period. In Washington, you have a choice of exemption scheme to use -- either the Federal exemptions or the state exemptions. You mu st select an overall scheme, and cannot pick and chose the most beneficial rule for each exemption category. Under the Federal scheme , you are allowed to exempt from your bankruptcy estate:

$20,200 in equity in your home
$3225 in equity in your car
$525 per item in any household goods up to a total of $10,775
$2,025 in things you need for your job (tools, books, etc.)
$1,075 in any property, plus part of the unused exemption in your home, up to $10,125
Your right to receive certain benefits such as Social Security, unemployment compensation, veteran's benefits, public assistance, and pensions-regardless of the amount

The amounts of the exemptions are doubled when a married couple files together. Under the Washington State exemption scheme you may exempt from your bankruptcy estate:

$125,000 for a homestead
$2,700 for household goods, appliances and furniture
$2,500 motor vehicle used for personal transportation. For a couple with two vehicles a total of $5,000 value may be exempted
$5,000 for tools and items necessary to work at your trade
All clothing, but only up to $1000 per individual for furs and jewelry or ornaments
$1,500 for books
All family pictures and keepsakes
All health aids
$2,000 of wildcard exemption, but no more than $200 cash, or $200 for bank accounts, stocks, or the like
Benefits, retirement plans, insurance, judgments, and other intangibles.
Child support, so long as it is traceable

In determining whether property is exempt, you must keep a few things in mind. The value of property is not the amount you paid for it, but what it is worth when your bankruptcy case is filed. Especially for furniture and cars, this may be a lot less than what you paid or what it would cost to buy a replacement. You also only need to look at your equity in property. That means you count your exemptions against the full value minus any money that you owe on mortgages or liens. For example, if you own a $50,000 house with a $40,000 mortgage, you have only $10,000 in equity. You can fully protect the $50,000 home with a $10,000 exemption. By working with a skilled Yakima bankruptcy lawyer, you can choose the exemption scheme most suitable to your situation and make sure you take full advantage of this opportunity.

Bankruptcy Attorney in Yakima

At Eastwood Law, we will take the time to help you with every aspect of you bankruptcy. Eastwood Law is experienced with bankruptcies and want to make sure that at the end of this process, you and your family are in the best-possible position financially. Many people avoid declaring bankruptcy due to fears that they will have to give up everything they own, but we will work to help you find every possible exemption that could apply for you.

Contact a Yakima bankruptcy lawyerto learn more about how exemptions can make your bankruptcy easier and more effective in achieving a fresh start.