Yes! This question brings into play the venue rules of bankruptcy. In short, the debtor should file in a place where she has been domiciled or has a residence, principal place of business, or principal assets for a period of 180 days prior to the filing date or for a longer part of such 180 days than in any other district (91 days).
Venue is easily confused with the proper usage of exemptions.
In order to use the Florida exemption statutes a person must live in Florida for 2 full years prior to filing. If not, the person will likely use the federal exemption statutes.
Put simply, even if you have recently moved to Florida you will quite quickly qualify to file in your new home.
There is no need to return to your previous home state to file. Remember, bankruptcy is a federal court event and as a result all of those creditors from your old state, or any and all states, must abide by the orders set forth by the federal bankruptcy court.
Call my office at 850-215-3841 or visit www.bankruptcypanamacity.com for more information.
Showing posts with label Exemptions. Show all posts
Showing posts with label Exemptions. Show all posts
Miscellaneous personal property exemption
When a debtor files for Chapter 7 bankruptcy he or she is allowed an exemption of $1,000 dollars ($2,000 for joint filings) for miscellaneous personal items including: cash, household furniture, clothing, and jewelry among other items.
These items are valued based upon the resale value of the item rather than the original cost. In other words, a dining room table purchased for $500 in 1999 might only be worth $100 dollars today. The table would be valued at today's value.
In 2007 the Florida legislature introduced a new "wild card" personal property exemption for the benefit of those debtors who do not claim a Homestead exemption. This personal property exemption is quite large - $4,000 ($8,000 joint filing.)
The presence of these exemptions means that most debtors filing Chapter 7 bankruptcy cases are non-asset debtors who will owe little or nothing to the trustee at the end of the case.
These items are valued based upon the resale value of the item rather than the original cost. In other words, a dining room table purchased for $500 in 1999 might only be worth $100 dollars today. The table would be valued at today's value.
In 2007 the Florida legislature introduced a new "wild card" personal property exemption for the benefit of those debtors who do not claim a Homestead exemption. This personal property exemption is quite large - $4,000 ($8,000 joint filing.)
The presence of these exemptions means that most debtors filing Chapter 7 bankruptcy cases are non-asset debtors who will owe little or nothing to the trustee at the end of the case.
What happens to my car when I file bankruptcy?
I get asked this question pretty often: what happens to my car when I file for Chapter 7 bankruptcy? The answer is - it depends.
If you own the car outright then we must use the bankruptcy exemptions to protect as much of the value of the automobile as possible.
You are allowed a $1,000 equity exemption on one vehicle. If you are filing jointly then your spouse may add his or her exemption for a total of $2,000. Generally, the trustee of the bankruptcy court values automobiles based upon KBB or NADA values taking into account wear and tear on the car.
We can also utilize any unused personal property exemptions (up to $8,000 for a non-Homestead filing couple) to further protect the value of the automobile.
If you are making payments to a bank then the vehicle is secured property and is dealt with a bit differently. The amount of money owed on the vehicle is subtracted from the market value of the vehicle. If this is a negative number then there is no equity and you can choose to reaffirm the note and keep the vehicle - or simply give it back.
If there is equity then this amount can be exempted using the process described above.
If you own the car outright then we must use the bankruptcy exemptions to protect as much of the value of the automobile as possible.
You are allowed a $1,000 equity exemption on one vehicle. If you are filing jointly then your spouse may add his or her exemption for a total of $2,000. Generally, the trustee of the bankruptcy court values automobiles based upon KBB or NADA values taking into account wear and tear on the car.
We can also utilize any unused personal property exemptions (up to $8,000 for a non-Homestead filing couple) to further protect the value of the automobile.
If you are making payments to a bank then the vehicle is secured property and is dealt with a bit differently. The amount of money owed on the vehicle is subtracted from the market value of the vehicle. If this is a negative number then there is no equity and you can choose to reaffirm the note and keep the vehicle - or simply give it back.
If there is equity then this amount can be exempted using the process described above.
What do you get to keep after filing a Chapter 7?
Florida law determines that certain property is off limits to creditors after a debtor has filed bankruptcy. These items are known as "exempt" from the reach of creditors and cannot be touched.
A short list of these items include: the Florida Homestead exemption, which is unlimited if you have owned the home for 40 or more months; a 1,000 dollar auto equity exemption, a 1,000 dollar personal property exemption, and an exemption upon qualifying IRA savings accounts, 401k plans, social security and disability income, and health savings accounts.
In addition, for persons not claiming a Homestead exemption (usually renters) there is a 4,000 dollar "wild card" property exemption.
Importantly, when a married couple files jointly, all of these exemptions can be combined to double the amount of exempt property.
As you can see, with proper planning and guidance from a bankruptcy lawyer you can really keep a good deal of your non-secured assets even after filing bankruptcy.
A short list of these items include: the Florida Homestead exemption, which is unlimited if you have owned the home for 40 or more months; a 1,000 dollar auto equity exemption, a 1,000 dollar personal property exemption, and an exemption upon qualifying IRA savings accounts, 401k plans, social security and disability income, and health savings accounts.
In addition, for persons not claiming a Homestead exemption (usually renters) there is a 4,000 dollar "wild card" property exemption.
Importantly, when a married couple files jointly, all of these exemptions can be combined to double the amount of exempt property.
As you can see, with proper planning and guidance from a bankruptcy lawyer you can really keep a good deal of your non-secured assets even after filing bankruptcy.
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