The Federal Bankruptcy Exemptions
November 1, 2019 By: Carrie Weir
Protecting Your Assets When You Seek to Permanently Discharge Debts
As we indicated in an earlier blog, the allowable exemptions under Texas law in a Chapter 7 bankruptcy petition are extremely generous. As a general rule, you’ll be better served by claiming the exemptions under state law. Here, however, are the types and limits on property that may be excluded from your bankruptcy estate under federal law. Remember, you must choose either the state or the federal exemptions—you can’t pick and choose from both.
The Federal Bankruptcy Exemptions
The exemption amounts under federal law are adjusted every three years to address inflation and cost of living increases. The most recent modifications were in April, 2019.
Currently, the federal exemptions in a Chapter 7 bankruptcy filing include:
- Homestead exemption—For filings after April 1, 2019, you can claim up to $25,150 in theequity in your home (but you must have that much equity). Cases prior to April 1, 2019 carry a $23,675 homestead exemption.
- Motor vehicle—The federal exemptions allow you $4,000 in the equity in your car
- Jewelry—You are limited to $1,700 in exemptions
- Tools of your trade—The ceiling is $2,525
- All remaining personal property—You cannot claim an exemption of more than $625 peritem or an aggregate of $13,400
- Retirement accounts—Though all retirement accounts that are exempt from taxation are also exempt from attachment in bankruptcy, the maximum you can protect in your IRAs is $1,362,800.
Contact Heath, TX Bankruptcy Attorney Carrie Weir
At the Law Office of Carrie L. Weir, I provide a free initial consultation to anyone with questions or concerns regarding a personal bankruptcy filing. Contact my office by e-mail or call me at 972-772-3083 to schedule a private consultation. With offices in Rockwall, Texas, I represent clients in Heath, Greenville, Lavon, Wylie, Mesquite and Rowlett.