Are My Tools Safe In Bankruptcy?

Bankruptcy Attorney

Many people that want to go bankrupt are very worried about what is going to happen to their possessions. Some individuals who work in various trades have collected many different tools that they need in their line of work. Without these tools they may no longer be able to work in their chosen field. If they are going bankrupt they are highly concerned about losing these.

Property Exemptions

Fortunately most of the States have a tool exemption within their bankruptcy laws. They may vary from state to state but generally the amount of the exemption ranges between $1,500. To $2,500. The bankruptcy laws are comprised of both State and Federal laws. In the Federal rules there is an exemption, but unfortunately the State laws will come first.

Your Dayton bankruptcy lawyer will determine what the rules are in regards to your tools.  Some states have a general exemption, while others are industry specific.

When it comes to the types of tools it can vary but sometimes business vehicles may be included in this category. The rules concerning this will be very specific and rigid in regards to the vehicle’s use. It must be needed to carry out your work activities and is not just a method for you getting back and forth to work.

There are a lot of procedures and regulations pertaining to bankruptcy and it is important that you have the right advice when going through this form of debt relief. Knowing what it entails before you start your bankruptcy action will give you a clearer understanding of it and whether it is the right option for you.

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