Experienced Bankruptcy Exemption Attorneys
Chapter 7 bankruptcy involves having a court-appointed trustee sell the assets of a debtor to pay off creditors. The state separates assets into two categories: exempt and nonexempt. The individual must list all non-exempt assets for the trustee to appraise and sell. Failure to do so can result in a court-issued search warrant. Exempt assets cannot be sold to pay debts no matter their worth. By identifying exempt assets, an individual can clarify what possessions will remain after the bankruptcy process.
Exempt Assets in Chapter 7 Bankruptcy
While there are nationally-recognized exempt assets, they vary from state to state. An individual pursuing bankruptcy has the choice to either follow the state or national ramifications for their particular claim. Married couples who file for joint bankruptcy can double all Louisiana exemptions except for real estate. The most common Louisiana bankruptcy exemptions are:
Residential property and the land it sits on valued at up to $35,000 is exempt from bankruptcy in Louisiana. The homestead exemption in Louisiana protects up to five acres of land if the home is in a town or up to 200 acres in a metropolitan area. Residents may be able to exempt the entire value of the home if obligations arise from a catastrophic injury or illness. Spouses cannot double the homestead exemption.
Individuals pursuing Chapter 7 may also protect a portion of life insurance benefits. This includes proceeds from natural disasters, health insurance, accident insurance, and fraternal benefit societies.
One vehicle the individual and his or her family uses is exempt for up to $7,500. Another vehicle may be exempt if it is modified to assist a disabled family member.
Personal property is exempt from sale in Chapter 7 bankruptcy. These personal property items include:
- One cow
- Military dress/accessories
- Engagement or wedding ring ($5,000 in value)
- Federal Earned Income Tax Credit
- Guns and ammunition ($2,500 in value).
- Seventy-five percent of disposable income or 30 times the federal minimum wage (whichever is greater).
- Work tools
- Instruments, tools, and books used for work are exempt as well as one utility trailer.
Filing for Chapter 7 bankruptcy is no simple task and deserves the attention of a qualified Chapter 7 bankruptcy attorney. E. Orum Young Law Offices has over 35 years of experience and has filed the most bankruptcies in Northeast Louisiana. We house experienced bankruptcy attorneys who can assess your current financial state and determine whether Chapter 7 or Chapter 13 bankruptcy is most suitable for your particular case. Call (318) 450-3192 today for a free consultation.
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