Bankruptcy Exemptions in Orange County
As an Orange County bankruptcy lawyer, we can work with you to develop a plan for how to improve your financial situation. This often involves filing a Chapter 7 or liquidation bankruptcy. In this type of filing, your debts are wiped out. This does not work like taking an eraser and simply erasing them from history, but instead, it provides a way for whatever debts that cannot be satisfied to be eliminated. First, however, the trustee will look for ways to give your creditors back as much money as possible. To do so, they are likely to look at your assets. This is where exemptions come into play. Technically speaking, your assets can be liquidated in order to pay for your debt. As your bankruptcy lawyer, our job will be to try to maximize your exemptions so you can retain as much of your property as possible. This is actually one of the most important reasons to work with an experienced attorney since it can make the difference between you having to sell much of your assets or your ability to retain and continue using them.
Assets and Equity
Your assets are not just large pieces of property like your home. They are also the cars you own, recreational vehicles, jewelry, clothing, furniture, etc. Essentially, anything you own is an asset, no matter how small. The good news is that there are exceptions and certain rules that allow certain property not be liquidated, including:
- Equity in your home ranging from $75,000 to $175,000 based on the exemption that you take, whether or not you or your family member is disabled, and your age.
- Equity in your car around $2,900.
- Up to $4,575 in your checking or savings account if married and on Social Security.
- Up to $7,625 in personal jewelry, art, family keepsakes, etc.
- Some of your personal injury or wrongful death settlements.
- A portion of the wages you received prior to filing (typically 75% of what you received in the past 30 days).
- 75% of your vacation credits if you are a public employee.
- Certain tax-exempt retirement accounts.
- Disability benefits.
- A portion of the insurance proceeds.
- Trade tools up to a certain amount.
- And more.
There are actually many exemptions you could qualify in order to retain much of your personal property. Since the rules are complex and the amount you can keep depends on your particular situation, it is in your best interest to work with an attorney that understands these laws and how to use them to your maximum benefit. As your Orange County bankruptcy lawyer, this is exactly what we will do for you. We will analyze your entire financial situation to determine the best way to ensure that you can maximize any exemptions available to you while simultaneously wiping out as much of your debt as possible.
Speak With an Attorney
Get the help you need to file a bankruptcy and to protect your interests at the same time. When you speak with an Orange County bankruptcy lawyer in our office, we can answer your questions, discuss legal strategy and begin your case.
NOTE: This is for informational purposes only and does not constitute legal advice.