With Bankruptcy Property Exemptions, You Can Keep Most, If Not All, of Your Assets
Many people delay filing for bankruptcy protection because they are afraid they will lose all of their possessions. In fact, many people who file bankruptcy do not lose any of their property, either because the property is exempt under Massachusetts or federal law, or because it is not valuable enough to take.
I am Neil Warrenbrand. In my bankruptcy practice, I help individuals and businesses throughout Boston and Massachusetts preserve their assets and their dignity by filing bankruptcy. I offer a free initial consultation to discuss your financial situation. One thing we will discuss is whether you are likely to lose any of your property by filing bankruptcy.
What does it mean when Property is Exempt?
In a bankruptcy, the trustee appointed to oversee your case can liquidate, or sell, any non-exempt property to pay your creditors. Therefore, exempt property is property that the bankruptcy trustee cannot take to pay your debts. There are different exemptions under federal bankruptcy law and Massachusetts law. When you file bankruptcy, you will be allowed to choose either the Massachusetts exemptions or the federal bankruptcy exemptions. As your lawyer, I will advise you on which exemptions will provide the most protection.
Massachusetts law is relatively generous in the amount of equity you can keep in your home. It allows for an exemption of up to $500,000 in equity for your principal residence. However, federal exemptions are more generous for motor vehicles and personal property. For instance, if you do not have equity in a home, federal law, in addition to the other numerous exemptions it provides, provides for an $11,975 exemption, known as the "wild-card" exemption, that can be used to protect any type of personal property for which there is no other exemption, or for which the exemption is insufficient to cover the entire value of the asset.
Generally, retirement benefits such as 401(k) and IRA accounts are exempt under Massachusetts and federal law.
Free Bankruptcy Attorney Consultation
To discuss the nature of your assets and whether they will be exempted in bankruptcy with an experienced and compassionate lawyer, call 866-959-9065 or fill out the contact form on this Web site to schedule you free initial consultation. My office is conveniently located in downtown Boston and is accessible by all T lines. I also have branch offices in Marlborough and Woburn, Massachusetts, to best serve my clients' needs.
