Exempt Property (Keepers)

Under the law, a number of things or types of things are EXEMPT, which means that you don't give them up in BANKRUPTCY.  Each State has different provisions,  or the list in the Bankruptcy Code can control these.    In Louisiana the exempt property includes the following (Assuming you haven't given a mortgage on them):

clothing   towels and linens    washer and dryer    wedding rings   living room furniture  one bedroom set     one dining room set

pots, pans, dishes     stove, refrigerator, freezer   things needed for trade, occupation, or profession      most retirement funds  

homestead in the amount of $25, 00 

one firearm 

automobile used in work or to get to work but only up to value of $7,500

EXEMPTIONS do not apply to mortgaged property. For example, the homestead exemption only goes to any value in excess of what you owe.  This is "equity" and the exemption can protect that from creditors in Bankruptcy.  The new law has not changed the exemptions for Louisiana because we use State Law for calculating them.  BUT the thing is, if you are paying on an item, you may be able to continue doing so and keep that item.  So usually, even if a car is not exempt, if your debt is equal to its value, you keep it by paying the regular payments. 

The Professional Law Corporation of G. Paul Marx can help you decide how these EXEMPTIONS fit into your case. Remember that if you mortgage an exempt item, you give up the exemption, because you agree that the CREDITOR may have a right to take the security in payment of the debt.

G. Paul Marx, A Professional Law Corporation  337 237 2537

  Chapter 7 Topics:   THE DEAL     THE TRUSTEE     EXEMPT PROPERTY    

MORTGAGES, SECURED CREDITORS     TRUSTEE ACTIONS 

ACQUIRING PROPERTY   

Chapter 13

NEW LAW- OCTOBER 17, 2005 BANKRUPTCY REFORM ACT  

THE U.S. Congress and President Bush have authorized us by law to state that as to our Bankruptcy Work at this Law Firm, WE ARE A DEBT RELIEF AGENCY. WE HELP PEOPLE FILE FOR BANKRUPTCY RELIEF UNDER THE BANKRUPTCY CODE.