HOW MUCH AM I ALLOWED TO KEEP?

Depending on which state you live in, you will be able to keep certain items.

  • The household exemption is now $125,000 if the property was acquired in the last 3.3 years (1215 days). This limit is not applicable to any interest transferred from a previous principal residence (acquired prior to the beginning of such 1,215 day period).
  • This value is reduced if there was any sale of nonexempt property made by the debtor to hinder, delay or defraud creditors anytime 10 years before the bankruptcy filing.
  • The $125,000 limit is fixed if the court determines the debtor has been convicted of a felony demonstrating that filing was in abuse of the provision of the Bankruptcy Code or the debtor owes a debt as a result of a violation of federal or state securities laws, fiduciary fraud, racketeering, or crimes or intentional torts that caused serious bodily injury or death in the preceding 5 years. This limitation does not apply if the property is “reasonably necessary for the support of the debtor and any dependent of the debtor”.

The state that you use for your exemptions is determined by where you resided during the 730 days (2 years) before filing. If you did not live in a single state in the previous 2 years than you use the state that you spent the majority of the 180 day period preceding the 2 year period. Or, if the preceding renders you ineligible for any exemptions, then the debtor is allowed to choose the federal exemptions.



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