How Do Bankruptcy Exemptions Work?

What are exemptions and how do they work? This is an important question because exemptions make a difference in items that will be part of the proceeding. Bankruptcy laws can be confusing, that is why it is important to consult a Brighton Beach bankruptcy lawyer before filing.

What are exemptions?

Exemptions can be property, cash and personal items that may be excluded from the bankruptcy case and able to be retained. Your lawyer will be able to go through the exemptions when you meet with them. As every situation is unique, this is a broad view on exemptions and all the exclusions are not listed here but this is a general guide.

Residence and Personal Property 

The law has made provisions regarding what real property you can keep. You may retain a residence up to a certain amount based on your county. Personal property includes items located in the home and vehicles up to a specific amount that may be kept. See a bankruptcy lawyer Brighton Beach for questions about objects that can be classified as personal property.

Income and Retirement Accounts

Your lawyer will be able to advise you about unpaid wages that could possibly be excluded in a bankruptcy case. Many retirement accounts from occupations ranging from teachers to volunteer fighters may be exempt. This also includes 401(k)s and IRAs up to a designated amount.

Support and Insurance

Child support and alimony are defined as items that you can keep during a bankruptcy. Many types of insurance proceeds could be exempt. For more information about this, speak to your bankruptcy lawyers in Brooklyn NY for advice.

Conclusion

The area of exemptions is very complex which is why having the right legal help is key. It is important to work with someone who knows the law. The attorneys of Ursulova Law can help you understand the assets you are able to keep during and after a bankruptcy.