The Confusion over Bankruptcy Exemptions

Bankruptcy Attorney Dayton, Oh

It is not unusual for people who are contemplating bankruptcy to start doing a little bit of research about it. When they do they will come across what is called bankruptcy exemptions, which are applicable to the Chapter 7 Bankruptcy. This can get confusing. People want to know what they are going to be allowed to keep when they file for their bankruptcy. What lends to the confusion is that each State has its own list of what is exempt and there is also a Federal list as well. Which one is going to be applicable to your particular case?

Asset Considerations By Chapter

When you hire the services of a bankruptcy attorney in Dayton the first thing that will be determined is whether you qualify for a Chapter 7 bankruptcy or a Chapter 13. Once that is determined and if it turns out to be the Chapter 7 then the exemptions become important. Your legal advisor will know which rules will be applicable to your filing as it pertains to the State exemptions or Federal exemptions.

In many cases the State exemptions will take priority over the Federal ones. In a fair number of the States they will actually allow you to choose which exemption system you want applied to your bankruptcy. Your legal advisor will look closely at what your bankruptcy estate file is comprised of and advise you based on this what would be your best choice. This is one of the important reasons for having good legal counsel to help you with the various choices and decisions you need to make throughout your proceedings.

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