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 $35,000
firearms
automobile 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, TRIAL LAWYER (A Professional Law Corporation) (337) 237 2537
Chapter 7 Topics: THE DEAL THE TRUSTEE EXEMPT PROPERTY
MORTGAGES, SECURED CREDITORS TRUSTEE ACTIONS
THE U.S. Congress 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.