What Are Exempt Vs. Non Exempt Assets In A Bankruptcy

Posted on : May 6, 2019
Florida Attorney For Chapter 7 Means Test

When you are overwhelmed by debt, it’s difficult to know what the first step to getting out is. Bankruptcy is one option, and with each type of consumer bankruptcy — Chapter 7 and Chapter 13 — you must list both exempt and non-exempt property. Here’s what you need to know about classifying your property and when to involve a Florida bankruptcy attorney.

What Is Non-Exempt Property In A Bankruptcy?

Non-exempt property is a property that the bankruptcy court may liquidate or sell to satisfy all or part of your debts. Creditors can also place liens on the non-exempt property. Typically, this includes non-essentials like:

  • Stocks and bonds
  • Recreational vehicles
  • Second vehicles
  • Watercraft
  • Heirlooms and antiques
  • Second homes
  • Jewelry beyond a specified value
  • Investment property you are not living on

What Is Exempt Property?

Exempt property is a property that the bankruptcy court cannot liquidate or sell to satisfy all or part of your debts and property that your creditors cannot place a lien on. Usually, this includes property that you need in your everyday life, such as:

  • Clothing
  • Furniture
  • Appliances
  • Household Goods
  • Jewelry below a specified value
  • Pensions
  • Social security and unemployment benefits
  • A portion of unpaid earned wages

How to List Your Assets When Filing for Bankruptcy in Florida

When filing for a Chapter 7 or Chapter 13 bankruptcy in Florida, you will need to list all of your assets and categorize them as exempt or non-exempt. You may have to provide documentation or proof of exempt assets, especially if they’re unique or not standard like a home or primary vehicle. When you file for bankruptcy, you swear that the information you are providing is accurate to the best of your knowledge.

When to Contact a Bankruptcy Lawyer

It can be difficult to know if a property is or is not exempt. In some circumstances, a type of property could be considered exempt, while in others it is non-exempt. For example, musical instruments are non-exempt, unless the owner plays music using that instrument as part of their job or career. A lawyer can help you sort out what is exempt and non-exempt, so you can be confident that your filing is accurate and that you are listing as much of your property exempt as possible.

Contact the Caplan Bankruptcy and Family Law Firm Today

If you’re in the middle of a bankruptcy case or you are considering filing for bankruptcy in Florida, don’t hesitate to reach out to the Caplan Bankruptcy and Family Law Firm for comprehensive legal representation. Call now for a consultation at (407) 512-9569.