Using Federal Wildcard Exemption As Wildcard

The federal homestead exemption is $20200 per individual filing. You can use the unused portion of homestead exemption to cover other personal properties of that much value. This way, even a certain portion of homestead exemption can also be used as wild card exemptions in certain cases up to the value of $10,825.

As per federal exemptions, a bankrupt individual is allowed to keep many assets and properties that include vehicles, jewellery, clothes, personal items up to $9300, pensions and IRAs, unemployment insurance, alimony and child support, and homes with equity less than $ 17, 425. Besides these normal exemptions, the debtor is also allowed to exempt any other asset that is otherwise non-exempt up to the dollar amount of $1,150 of any property.

States Where Such Exemptions Can Be Used

West Virginia – up to $800 from unused portion of homestead exemption can be used as wild card exemptions

Washington – $2,000 of any personal property, but in terms of stocks, bonds, bank deposits and cash, not more than $200 can be exempted

Virginia – Up to $10,000 of unused portion of personal property or homestead exemption

Vermont – Up to $7,000 of unused exemptions for crops, clothing, appliances, household furniture, jewelry, tools of trade, and motor vehicle

South Dakota – Up to $4,000 of any personal property (if claimed by non-head of family); up to $6,000 (if claimed by head of family)

South Carolina – Up to $5,350 of unused portion for tool of trade, jewelry, personal property, motor vehicle, burial and homestead exemptions

Rhode Island – up to $5,000

Pennsylvania – up to $300 of any property, including cash

Oregon – up to $400 of any personal property ($800 in case a married couple files jointly)

Ohio – up to $1,175

North Dakota – up to $7,500 of any property in lieu of homestead; if crops or grain exemptions are not used, up to $3,750 of any personal property (if claimed by non-head of household) and up to $7,500 of any personal property (if claimed by head of household)

North Carolina – up to $500 of any personal property; up to $5,000 from unused portion of burial or homestead exemptions

New Mexico – up to $500 as wild card exemptions

New Hampshire – up to $1,000

Nevada – up to $1,000

Nebraska – up to $2,500 of any personal property (except wages) from unused portion of homestead exemptions

Missouri – Up to $600 (if claimed by non-head of the family); $1,250 (if claimed by head of family); additional $350 per child may also be claimed by the head of family

Mississippi – up to $50,000 of any property, including cash and bank deposit, but only individuals who is 70 years of age or older can qualify for it.

Maryland – up to $6,000 of any property, including cash; An additional $5,000 in any real or personal property; however, the exemptions must be claimed within thirty days of attachment or levy

Maine – up to $400 in any property; up to $6,000 from unused portion of homestead exemptions

Kentucky – up to $1,000 as wild card exemptions

Iowa – up to $1,000 of cash or any personal property

Indiana – up to $8,000 of any tangible or real estate personal property

Illinois – up to $4,000 of any personal property, excluding wages

Idaho – up to $800 of any tangible personal property

Georgia – up to $600 of any property; Up to $5,000 of unused portion of homestead exemptions

District of Columbia – Up to $850 in any property; up to $8,075 of unused portions from homestead exemptions

Connecticut – up to $1000 of any personal property

Arkansas – up to $200 (for singles and non-head of family); up to $500 of any personal property (head of family or couples)

Alabama – up to $3,000 of any personal property, excluding wages; up to $6000 for couples if filed jointly

Delaware – head of family can qualify for wild card exemptions up to $500 of any personal property, excluding tools of trade

Save Your Home

All real and personal properties that you use as a residence fall in this category. If you have filed the petition individually, you will be able to exempt up to $10000. If the current value of your home is less than $10000, you can keep it, but if its value is higher than that, your home is likely to be sold off and the trustee will pay you $10000 in cash. In cases, where a married couple has filed the petition jointly, the exemption limit is $20,000 (double). If you do not want to lose your home, an Atlanta bankruptcy attorney can help. Even if your home is worth more than $10000, the lawyer may negotiate a settlement, as per which you will be able to keep your home, but in return, you will have to sacrifice other exemptions of equivalent value. Alternatively, you may also save your home by agreeing to continue with the mortgage payments and to pay off all previous dues. Your lawyer can even negotiate with the mortgage lender and establish an affordable repayment plan so that you can continue making the monthly payments in a timely manner.

Save Your Car

Life can become very difficult in Georgia if you do not have your own car. So, you probably do not even want to lose your vehicles. As per the laws, you can keep your vehicles up to the value of $3500. It means if the current value of your car is $12000 and you still owe $4000 on it, your car will be sold off and you will get only $3500 in cash. This is obviously not a fair deal when you already have paid a large portion of the car loan. Your Atlanta bankruptcy attorney can come to your rescue in such cases. They will find out a middle way to save your car. For example, a common strategy is to continue making the car loan payments and to pay off all previous dues. But, it is not as simple a task as it seems. There are lots of legal intricacies involved with the process. So, unless you are an expert in Georgia bankruptcy laws regarding exemptions, you will need an experienced legal representative to handle the case on your behalf.

Overall, an Atlanta bankruptcy attorney can play a very important role when it comes to saving your home and vehicles while your assets are supposed to be liquidated under chapter 7 provisions.

Homestead Exemption

Homestead exemptions allow you to keep a real or personal property up to the value of $10,000. However, the maximum limit can get doubled in case a married couple is jointly filing for bankruptcy. It is important to note that this specific provision does not say that your home is safe; all it says is that you can keep up to $10000 of its value. It means if your home is worth more than $10000, the trustee will sell it off, give $10000 to you in cash, and use the balance to pay off the creditors. Atlanta Bankruptcy Attorneys however can help you save your home, as they are experts in these types of legal cases. In case the value of your home is less than $10000, you can use the balance and exempt properties that fall under other categories.

Personal Property

The laws applicable in Atlanta also allow you to keep some of your personal assets, such as furniture like this office chair, clothing, home appliances, television, and other such things. The maximum collective value of all such assets that can be exempted in this category is $5000. However, a single asset should not be worth more than $300. Again, if the value of a certain asset is more than $300, it is likely to be sold off and then the trustee will give you your $300 while the balance will be used for the repayment of the debt. The laws also allow you to use any unused homestead exemption up to $5000 to exempt some more personal properties. Besides that, there are also provisions to exempt personal injury cash recoveries up to the value of $10000. You can even keep your jewelry up to the value of $500. Atlanta Bankruptcy Attorneys can help you make the best use of these exemptions.

Automobile

Personal vehicles can be exempted up to $3500. If you still owe some money on your car, that outstanding due is deducted from the current value of the vehicle in order to find out how much protect equity you have. For example, if the value of a car is $14000 and you still owe $11000 on it, you will be able to exempt only $3000. But, if you owe $9000, only $3500 (the maximum exemption limit) will be exempted. In most cases, the vehicles are sold off and you get equivalent amount of money in cash.

Public benefits, such as unemployment compensation, local public assistance, veterans benefits, workers’ compensation, Social Security, crime victims compensation, and aid to the blind or disabled are exempted in full. Atlanta Bankruptcy Attorneys are expert legal professionals who make sure that the debtor gets the maximum value of exemption, as much as possible.

Current Sale Value

There are several factors that are taken into account when it comes to evaluating assets that you are claiming as exempt, such as its age and current condition. That is the reason properties under bankruptcy exemptions are always valued at their current sale value. The sale value can be estimated by comparing the value of similar used products in consignment shops and auction stores. You can even contact these stores and request them to provide you an estimate for the goods claimed as exempt.

Quick Sale Value

If it is a real estate property, you should try to find out its “quick sale value”, the price you will get if you sell it within a week. You will obviously try to negotiate as high a price as possible. That’s not a problem as long as you are fair in your estimates. The trustee who has been appointed to deal with the liquidation process of your assets will accept a “fair” quick sale price for your home claimed in bankruptcy exemptions, which is the net value after deducting repair costs, closing costs, and commissions. You can use the services of a professional real estate appraiser for this purpose. The trustee is very much likely to accept the estimates provided by a licensed appraiser.

Properties Subject to a Lien or a Mortgage

When it comes to evaluating assets and properties that are subject to a lien or a mortgage, only the equity value is taken into account in order to determine the limits for bankruptcy exemptions. The formula to calculate equity value is very simple. You first have to get the current sale value of the asset and then deduct the amount of liens or mortgages from it.

Prorated Equity

When it comes to the valuation of co-owned assets, their prorated equity is taken into consideration. For example, if it is a boat and you own only one-third of the interest in it, only your share of equity will be considered to determine the exemption limit.

The estimate you provide is thoroughly reviewed by the trustee appointed by the court. Therefore, you are strongly recommended to follow the concept of maximum disclosure and fair evaluation while you are estimating the value of bankruptcy exemptions. If the trustee finds you guilty of hiding certain assets or evaluating the same in a way that is unfair, criminal charges may be filed against you.

Chapter 11 Bankruptcy

Chapter 11 bankruptcy is another form of personal bankruptcy and can be a great solution for those who have a regular source of income and still have hopes to get their finances managed for which all they need is some debt-free time. It is a heavy burden of debts that is stopping them from actively participating into their business activities and put the same on the path of profit. In usual circumstances, especially in genuine cases, the bankruptcy court delivers its judgment in the favor of the debtor. The court asks the creditors to lower down their claims to reduce the burden of debt on the debtor while the debtor is asked to make a repayment plan to pay off the creditors’ reduced claims. The bankruptcy court also appoints a trustee to keep an eye on the business activities of the debtor. They help the debtor to get their financial matters re-organized. They will also see if the payments to the creditors are being made in timely manner as per the repayment plan approved by the bankruptcy court.

Chapter 7 Bankruptcy

The chapter 7 bankruptcy is a form of personal bankruptcy where people do not have any hope to reorganize their financial life. In this case, the bankruptcy court orders the trustee to liquidate all the assets owned by the debtor and the amount thus collected is used to pay off the creditors’ claim as per the priority status if any.

Once a debtor is granted personal bankruptcy, it will affect his or her credit life for the next 10 years at least.