29 October ,2014 By Admin Category:Bankruptcy

What are bankruptcy exemptions? Generally speaking, the property of a bankrupt petitioner is subject to seizure by the court to repay the debts owed to creditors. This can be property such as your home or car, cash, stocks, and personal possessions like jewelry or valuable furniture and electronics.

Federal bankruptcy law allows petitioners to exempt some types of property from seizure under the principle that draining every asset does nothing to help the bankrupt individual and does little more to help creditors. Bankruptcy law is designed to provide people with a second chance. These exemptions allow individuals to keep some or all of their assets and belongings depending on their value and what is owed.

The kinds of property that can be exempted varies from state to state and the federal rules. Under Federal law, for example, if you are single and own a home, you can protect equity in your home up to $75,000.00. This means that the bankruptcy court cannot order a sale of your home to pay your debts if your equity in the home is $75,000.00 or less. In California, for example, a homestead exemption is permitted up to $24,060.00 and the same exemption for personal injury recoveries.  It is also possible to exempt multiple motor vehicles up to a maximum of $4,800.00 in value; in other words, the fair market value of the vehicle minus any loans on the vehicle.

California Bankruptcy Law allows you to choose which set of rules to use to protect your assets.  How much is exempt and in what category it is exempt may change depending on the circumstances of your case.  It is therefore very important to hire an attorney experienced in bankruptcy cases to design a plan and strategy that will best suit your needs in your potential bankruptcy case. It is also always advisable to consult with a qualified bankruptcy attorney before deciding on a Chapter 7 or Chapter 13 bankruptcy filing.

Henrik Karapetian is an experienced Glendale bankruptcy lawyer who always available to help new and existing clients with the individual attention they need.  It is safe to say that all of Mr. Karapetian’s clients have had all of their assets protected in their bankruptcy cases. Let us evaluate your financial situation and determine whether bankruptcy is right for you.

Henrik Karapetian is a dedicated Glendale bankruptcy lawyer who also handles family law, DUI and personal injury cases.  His offices are in Glendale, California and his services are available to the greater Los Angeles area.