The new pandemic relief law includes some helpful changes to bankruptcy law, including some protection of the $600 economic impact payments.
There are two military-related exemptions from the Chapter 7 means test. They are narrow but if you qualify it can be a major advantage.
To find out if you can keep everything you own in a Chapter 7 case, the first step is finding out what's in your bankruptcy estate.
Usually you use the property exemptions available for the residents of your state. But not if you haven't lived there long enough.
What happens when your bankruptcy trustee thinks you undervalued an asset? How does the trustee determine what you own and its value?
Beyond considering whether your assets have net value on the date of filing, do they generate rents, profits, or proceeds afterwards?
Pre-petition assets are "property of the bankruptcy estate," part of your Chapter 7 case. Post-petition assets are not.
If you have an "asset" Chapter 7 case, some or all of your debts are partially paid, with most or all of the remaining amounts written off.
Bankruptcy law sets a maximum dollar amount of protection for your recently-bought home, but this really applies to only a few states.
The federal exemptions are nudging up about 3%. But that only matters if you are allowed to use them, and are higher than your state ones.
Here are the rest of the important changes affecting Chapter 7 and Chapter 13 bankruptcy cases filed on or after April 1, 2016.
Every 3 years many of the dollar amounts in the bankruptcy statutes are adjusted for inflation. Here's a summary of the important changes.
Give both you, AND your assets, a fresh financial start.
The U.S. Constitution makes bankruptcy a federal procedure. So why is the amount of assets you can protect different in each state?
If your possessions are not fully protected by the available property exemptions under Chapter 7, Chapter 13 can save the day.