Bankruptcy exemptions offer the opportunity to protect certain financial assets from being sold off to repay debt. Finding out which bankruptcy exemptions you may have in your situation can help you prepare for bankruptcy. This can also help with deciding whether to file for bankruptcy. Consult with a Chattanooga bankruptcy attorney to learn more about what exemptions you might qualify for.
What Are Bankruptcy Exemptions?
When it comes to filing for bankruptcy, a bankruptcy exemption is any kind of property or financial asset that is protected. In other words, protected financial assets and property cannot be sold off, liquidated, or given to creditors. These are the financial assets you will be able to keep after filing for bankruptcy.
This is important to be aware of because some forms of bankruptcy involve selling off or liquidating your property and financial assets. Money generated from this process will be used by a trustee to pay back owed debt to one or more creditors. For example, Chapter 7 bankruptcy may have you sell your home if the equity is good enough to pay off creditors.
However, depending on the state you live in, you might be able to prevent this from happening. If your home has a low enough equity, then the trustee will be less likely to sell your home to pay back debt. At the same time, if your state considers your home to be a bankruptcy exemption, then this may also protect your home from being sold.
Tennessee and Georgia Bankruptcy Exemptions
There are federal bankruptcy exemptions and bankruptcy exemptions that are unique to certain states. Federal bankruptcy exemption categories include homestead property, personal property, pensions, public benefits, trade tools, alimony, child support, and insurance. The Tennessee bankruptcy exemptions include:
Up to $7,000 in homestead property for joint owners
Up to $12,000 in homestead property for those aged 62 and up
Up to $25,000 for individuals with a non-adult child
Public benefits for the blind, disabled, crime victims, social security, unemployment, veteran benefits, and workers’ compensation
Insurance ranging from health insurance to disability benefits
Up to $10,000 on personal property
Personal property like clothing, Bible, pictures, and health-related items
Consider contacting a Tennessee bankruptcy lawyer if you have questions about the specifics of these exemptions. Each exemption may come with its own limitations and rules. The Georgia bankruptcy exemptions include:
Alimony and child support
Disability and government benefits
Wrongful death compensation
Many people might be surprised to learn that Georgia also exempts jewelry and vehicles from bankruptcy in certain cases. This is sometimes possible when the financial values do not exceed a certain amount. For example, the value of the jewelry must not exceed $500 or more in value.
Call Tom Bible Law for Legal Aid
You could be eligible for bankruptcy exemptions. Feel free to call us at Tom Bible Law by dialing (423) 424-3116 for a consultation today to find out. Our experienced team of Tennessee bankruptcy lawyers is ready to help you stop creditor harassment through bankruptcy. We serve clients throughout the Tennessee cities of Chattanooga and Tullahoma.