When filing bankruptcy, there are a number of insurance benefits that are allowed for an exemption. The most commonly exempt insurance benefits in a Chapter 7 bankruptcy are life insurance benefits. Other benefits that are eligible for bankruptcy exemption include insurance benefits received as a result of natural disasters, health insurance benefits, accident insurance benefits, and fraternal benefit societies.
One of the most common bankruptcy exemptions in the state of Louisiana is vehicles. The state of Louisiana allows individuals and families one exempt vehicle for up to $7,500. Another vehicle may be exempt if it is modified to assist a disabled family member.
Although Chapter 7 bankruptcy does require individuals to liquidate their assets to pay off their debts, there are certain personal items eligible for exemption. Personal property exempt from sale in Chapter 7 bankruptcy includes:
- 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
- One utility trailer
Trusted Louisiana Bankruptcy Attorneys
Filing for Chapter 7 bankruptcy is no simple task and deserves the attention of a qualified Chapter 7 bankruptcy attorney. If you are filing for bankruptcy in the state of Louisiana, consider working with lawyers you trust like the attorneys at E. Orum Young Law Offices.
Orum Young Law Offices has more than 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, and which exemptions may apply to you.
Don’t hesitate to get started on improving your financial future. Call the offices of E. Orum Young at (318) 450-3192 today for a free consultation. We’re ready to help!