Things That Are Exempt In Indiana And Washington Bankruptcies
By submitting a list or schedule of your exempt property in your bankruptcy proceedings you can protect certain elements of your personal property. When you’re filing for bankruptcy you should find out in advanced what personal property is exempt from the process. That way you can keep it from the hands of creditors seeking to redeem it for value. We can all survive filing bankruptcy and with a little luck and the right bankruptcy lawyers, nobody will have to give up everything.
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You must begin by providing the court with a list of personal assets and liabilities. Since bankruptcy is supposed to help debtors out in the long run, states provide lists of what types of personal property and equity is exempt from collection or transfer of ownership. Certain property equity, which is the difference between it’s market value and that of any claims held against it, may be qualified to remain out of the clutches of creditors.
Different states have varying standards. In Washington state bankruptcy exemptions can protect up to $40,000, $2,700, and $5,000 of the equity of a homestead, household goods, or a vehicle. Life insurance and retirement plan bankruptcy exemptions can guard these types of monthly payments from creditors, or protect existing life insurance plans that apply to a debtor or their next-of-kin. Exemptions also apply to savings, bonds, pensions or anything in a qualified retirement plan.
In addition to these and a number of other broad categories, Washington state has a wildcard bankruptcy exemption that will protect up to $2,000 equity in various property not covered by other exemptions. The state of Indiana’s laws protect primary residence equity up to a value of $7,500 and $15,000 if a spouse shares the owner title for the property with the debtor. Similarly, $4,000 equity in other real estate besides primary residences can be guarded from creditors and up to $8,000 is safe if a spouse co-owns the real estate. Intangible property, such as money in bank accounts, as well as from tax refunds and other sources, can only be guarded in amounts up to $100, but as with many other states, retirement plan payments are 100% safe.
Different bankruptcy exemptions exist in different states. This can be very confusing to a debtor, and one of the best reasons to find a good bankruptcy lawyer.
