2022 Bankruptcy Exemption Laws

People who are facing financial difficulties are generally concerned about more than simply their rising debts and inability to pay them. People are frequently concerned about losing their property and possessions as a result of the process. Although some non-essential property may be liquidated to satisfy a debt in bankruptcy, there are other ways to safeguard most of what is important.
Bankruptcy exemption rules are one approach to preserve assets and property. When a person files for bankruptcy, bankruptcy exemption laws shield some types of property from creditors. A person’s home, personal belongings, and retirement accounts are all instances of exempt property.
There are two types of bankruptcy exemptions you can utilize for asset protection: state exemption laws or federal exemption laws. In federal exemption laws, the protected property allowances and values are the same for everyone.

Effective April 1, 2022 the following federal exemptions are available for those seeking bankruptcy:

• Homestead exemption: $27,900 individual / $ 55,800 for spouses
• Vehicle exemption: $4,450
• Tools of trade exemption: $2,800
• Personal property exemption: $700 per item / $14,875 for household goods
• Retirement exemptions: $Unlimited tax-exempt accounts / $1,512,350 IRA and Roth IRA
• Wildcard exemption: $1,475

Protected property allowances and valuations are more flexible and may cover more assets under state exemption rules than under federal exemption regulations. It’s vital to keep in mind that exclusions differ by state and may or may not cover high-value assets like your car or home. Exemption regulations in bankruptcy are intended to provide people a fresh start after filing for bankruptcy by enabling them to keep some of their most valuable possessions. Contact our office to speak to one of our Fort Worth bankruptcy lawyers about your assets in bankruptcy.