Your
Property
When you file bankruptcy,
your property becomes subject to administration by the bankruptcy
court, referred
to as your "bankruptcy estate." However, because something is part of the bankruptcy estate does not mean you
will have to give up this property, our California bankruptcy
attorney, Timothy G. McFarlin, can help. The bankruptcy
court's representative, the "bankruptcy trustee" will not take from you any property which is "exempt." For California residents, the exemptions available in bankruptcy are quite generous
and in over 90%of the cases filed, nothing is ever taken
by the bankruptcy trustee. Property
recently given away to friends or family members is also
considered property of the bankruptcy estate. People considering
bankruptcy often are tempted to simply give their property
away, or pay "favorite" creditors to avoid going into bankruptcy with property. This technique is never
a smart idea according to bankruptcy lawyers. Property
given away shortly before filing is still part of your
bankruptcy
estate, and the trustee has legal authority to recover
the property. If you have already given property away,
the property
simply needs to be listed on the petition. It is always
better to deal with asset problems straightforwardly, than
to hide
assets in bankruptcy.
If you need help with
filing bankruptcy, please contact a Bankruptcy Lawyer Today and start rebuilding your credit for the future.
Community
Property Information is also part of the bankruptcy estate.
All property either spouse earns during marriage is owned
jointly by both spouses and should be
included in the bankruptcy petition. Similarly, most
debt incurred by either spouse during marriage is considered "community debt" even if it is in only one spouses name. However, there are some situations where
it is perfectly acceptable for a married person to file
individually. Retirement
accounts are often not even considered part of the bankruptcy
estate. Property outside the bankruptcy estate is not
subject to administration
by the bankruptcy trustee. The bankruptcy court recognizes
that you will someday need this money to survive, and
there is no future in punishing you by taking your future
income
away.
Exemption
Information
California law (Read more California
bankruptcy law basic information) provides generous exemptions to both homeowners, and non-homeowners. "Exempt" property is property that the bankruptcy court protects for you. The bankruptcy
trustee may not administer, or sell, exempt property, it is property of which
you stay in possession, and keep, after your case is completed. The application
of exemptions to property can vary greatly between cases, but certain generalizations
can be made to give you an idea of what to expect. If you have assets over
the allotted exemption amounts discussed below, don't worry, your case will
simply need to be a chapter 13 instead of a chapter 7.
Homeowners
Information
Under the California exemption system designed for homeowners, your home's
equity is exempt up to $50,000 for an individual with no children living
at home, $75,000 for a married couple, or individuals with minor children
living there, and $125,000 for disabled individuals unable to work. To claim
an exemption on property however, you must live in the house as your principle
residence. If you do not live there, you may not claim a homestead exemption.
Consumers claiming a homestead exemption are not eligible to also claim the
wild card exemption discussed below.
Non-Homeowners
Under the alternative system of
exemptions in California, a consumer may claim a "wildcard" exemption
in any property up to an amount of approximately $18,000. You can use the
exemption on any property, even cash or money on deposit.
Additional
Exemption Information
In addition to the homestead and
wildcard exemptions, there are also separate exemptions
(which apply in either system discussed above),
for other types of property. A list of property that can
qualify as exempt includes: a car, furniture, clothing,
government benefits, jewelry, hobby equipment, tools used
on the job, earnings on deposit, qualified retirement plans,
health aids, and much more.
The
Discharge
The bankruptcy discharge is very powerful, it
is the legal excuse you need to make a fresh start. Once
the bankruptcy attorney reviews
your case including your assets, debts, income, expenses,
and is satisfied you have come to the bankruptcy court
to follow the law and make a full disclosure of your financial
affairs a discharge will be issued to you relieving you
of the responsibility to pay all qualified debts. The discharge
comes in the mail from the bankruptcy court approximately
2-3 months after your meeting with the trustee. The issuance
of the discharge formally concludes you bankruptcy case
and begins your new post-bankruptcy liberation from debt.
Bankruptcy attorneys in California can help you out through
all processes involved; Timothy McFarlin can.
If
you need help with filing bankruptcy, please contact a Bankruptcy Lawyer Today and start rebuilding your credit for the future.
