When you file for bankruptcy, you shouldn’t have to worry about losing everything you own. In fact, you might be surprised to learn how many items you can keep! All kinds of things are covered under laws regarding bankruptcy exemptions. It’s up to you and your lawyer to figure out what you can claim as exempt!
Claim Everything You Can!
Of course, you’ll want to claim everything you can under the umbrella of bankruptcy exemptions. While some assets may be hard to spin, you should be able to find a way to keep a lot of things at the end of the bankruptcy process.
In order to make the most of your claims, make sure you clearly describe the items you are claiming to be exempt. The more precise you are about your assets/possessions, the better.
Secondly, make sure you have law/statute to back you up. You can’t simply claim things as being bankruptcy exemptions just because you want to. You must cite a federal or state law that supports you. Also, this is a good time to mention that in many states (like Texas) you have to choose between the state and Federal statutes for all decisions pertaining to your case. The exemptions statutes are definitely worth looking into before making that decision!
Thirdly, ascertain the fair market value of the items you are claiming. And, be honest here! The last thing you want is to be accused of fraud in your bankruptcy case.