In Bankruptcy, What Property Can I Keep?

Bankruptcy CourtIn a bankruptcy case, you can keep all property which the law says is “exempt” from the claims of creditors. You can choose between state law exemptions or federal law exemptions.

Federal exemptions include:

  • $15,000 equity in your home;
  • $2,400 in equity in your car;
  • $400 per item in any household goods up to a total of $8000;
  • $1,000.00 in jewelry;
  • $1,500 in things you need for your job (tools, books, etc,);
  • $800 in any property, plus part of the unused exemption in your home, up to $7,500;
  • Your right to receive certain benefits such as social security, unemployment compensation, veteran’s benefits, public assistance, and pensions regardless of the amount.

You must have lived in New Hampshire for the last two years to use the New Hampshire exemption laws. New Hampshire exemptions include:

  • $100,000 in equity in your home
  • $4,000 equity in you car
  • Up to $3,500 in household furnishings
  • $5,000 in things you need for your job (i.e. tools, books, etc.)
  • $1,000 in any property plus up to $7,000 of unused other exemptions
  • $500 in jewelry
  • Most retirement plans, social security, unemployment and other public assistance benefits
  • New Hampshire law also protects up to 6 sheep, one hog, one pig, and either a horse a cow or a yoke of oxen.

The exemption amounts are doubled when a married couple files together.

In determining whether property is exempt, you must keep a few things in mind. First, property value is not the amount you paid for it, but what it is worth today. Especially for furniture and cars, this may be a lot less than what you paid or what it would cost to buy a replacement.

Further, you only need to look at the equity in your property. This means that you count your exemptions against the full value minus any money that you owe on mortgages or liens. For example, if you own a $50,000 house with a $40,000 mortgage, you have $10,000 of equity in your property. Under New Hampshire exemptions, if the equity is under $100,000, the property is fully protected. In this case, the property if fully protected.

For more information regarding bankruptcy, read the entire pamphlet entitled “Bankruptcy” from the New Hampshire Bar Association.

Remember, the law often changes and each case is different.  This information was meant to give general information and should not be considered a substitute for legal advice.

A decision to file bankruptcy should be made only after determining that bankruptcy is the best way to deal with your financial situation.  A consultation with an experience bankruptcy attorney can help.  Call the Lawyer Referral Service of the New Hampshire Bar Association today for a referral at 603-229-0002 or request a referral online.

 

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