The exemptions that you claim in case of bankruptcy is what will primarily impact the amount of assets that you may be able to protect in a bankruptcy and the amount that you will have to essentially pay particular creditors.
However, state legislation when it comes to bankruptcy may vary from one state to the other and hence the set of exemptions that you may be allowed or eligible to use will also differ depending on which state the case is booked under.
Federal bankruptcy exemptions
Bankruptcy lawyers in Lexington, KY explain that even though state level bankruptcy may vary from state to state, what does not vary are federal exemption sets. They remain constant all across the United States. Federal Bankruptcy exemptions essentially allow you to safeguard a particular amount of equity from all of your assets.
One of the most popular and most frequently used federal level exemptions is called the homestead exemption which, as the name suggest, allows you to protect equity on your home. Another common federal exemption is the automobile exemption and it protects equity towards your motor vehicles. In addition, there is also the wildcard exemption which can be claimed to protect equity towards any classification of property or properties, according to Kentucky bankruptcy attorneys.
There are several other niche federal exemptions that you may be able to use specifically which will be better tailored for your case. You just have to go ahead and research what options will benefit you most in terms of how much of your assets and valuables you can protect. However, this may be overwhelming for a lay person to handle alone and so we strongly recommend that you seek legal counsel as early as possible.
To further complicate things – and to make the hiring of a bankruptcy legal counselor even more imperative – in addition to federal bankruptcy exemption sets there are also state bankruptcy exemptions sets which can be state specific. Therefore, to comprehend which of these state bankruptcy exemptions sets you can use to your advantage in your bankruptcy case, you ought to ensure that you are legally well represented by a team that has extensive experience in your respective state.
Which exemptions can you use?
The exemptions you may use will depend on your domicile. Your domicile in turn will be decided by your permanent residential address (which state you reside in, pay taxes, vote, and so on).
Now which state you live will certainly change in the future (if America does not financially implode or get blown up by North Korean missiles) if you have seen Star Trek Beyond. In that movie there is a massive space station which has created an artificial living environment for tens of millions of sentient beings, including humans.
Captain James T. Kirk (Chris Pine) and his crew seemed to live on Yorktown which is what this artificial world was called. Anyone living on Yorktown, this is where they would pay their taxes and according to Yorktown’s rates perhaps. Humankind has to make it that far though and with President Trump being nominated those prospects have certainly increased.
Moreover, please note that some states do not allow you to file federal exemptions and they restrict you to only the state specific restrictions whereas some other states allow you to use both or a combination of both.
For a comprehensive view of what exemptions may be applicable to your case, talk to a Kentucky bankruptcy lawyer today and get all the help you need.