All property owed by a bankruptcy petitioner falls under the supervisor of the bankruptcy court’s trustee that is assigned to your case once the paperwork is in the hands of the court. Whether you have filed Chapter 13 or Chapter 7, the court may ultimately advise that some of your property and possessions be liquidated to pay off creditors. However, the court recognizes that some property needs to be retained for day to day living and allows such belongings to be termed “exempt” by your Columbus bankruptcy lawyer and the bankruptcy court.
The definition of “exempt” assets varies from state to state but generally the term means any assets that cannot be seized by creditor of the court. These items include things such as your toothbrush, your hair brush, and “ordinary” furniture (as compared to exotic or very expensive furnishings). Things deemed medically necessary are also considered exempt in most states. Some examples are walkers, contact lenses, prosthetic limbs, crutches and wheelchairs. Columbus bankruptcy advocate can provide you with a more complete list accepted by the Ohio bankruptcy court.
The limits on the monetary value of these assets also varies from state to state. For example, the value of your clothing may be exempt up to a certain value and non-exempt over that. Jewelry also can be retained up to certain limits. For example, if your wedding ring is extremely expensive or exotic, it may not be considered exempt. But, before you panic, check with your Columbus bankruptcy attorney.
Most of the following assets are considered exempt in most states:
? Unpaid wages
? Some of the equity in a residence.
? Some of the equity in a vehicle.
? Life insurance value
? Tools of a trade or profession, usually up to a set limit
? Reasonable necessary clothing
? Reasonably necessary furniture
? Household appliances
? Jewelry, up to a set limit (usually a few hundred dollars)
? Pensions
? Public benefits
The bankruptcy courts know that by the time a debtor has reached the point of filing bankruptcy, their assets have dwindled down in both number and value and are mostly either exempt or worthless. In the event that the trustee assigned to your case deems any of your assets “worthless”, he or she may choose to abandon that asset, meaning that he or she finds it worthless and you may keep that asset. A number of assets may be considered too “cumbersome”, meaning that that asset is either too large, too unique or too hard to sell. In this case, that asset may be abandoned by the court as well.