What Can I Keep When I File For Bankruptcy?
“What can I keep in bankruptcy?” It is the most frequently asked question for individuals considering their options. Our law firm is committed to helping clients understand the basics of bankruptcy, so that they are clear about the options available to them.
Located in Southaven, the O'Brien Law Firm, LLC, serves individuals throughout northwest Mississippi and southwest Tennessee on their bankruptcy and debt relief options. Our attorney, Kevin O'Brien, is well known for his experience and clarity when dealing with clients. As a former educator who taught paralegal students the basics of bankruptcy, he knows how to clearly explain how the law applies in a client’s case.
What Is An Exemption?
“Exemption” is the legal term that is used to delineate the property you can keep in bankruptcy. In other words, these “exempt” items are protected from the trustee in Chapter 7 bankruptcy in Mississippi and Tennessee. In both Mississippi and Tennessee, you have to use the exemptions that the individual state determines, unless you have lived in the state for less than two years.
Mississippi Bankruptcy Exemptions
While there are a number of exemptions, these are the ones most frequently asked about at our office:
- Equity in your home: In Mississippi, you can keep $75,000 in equity in your house. Equity is the value of your home minus the amount you owe on your mortgage or mortgages.
- Personal property: Individuals are allowed to keep up to $10,000 in personal property, which includes a car, household goods and cash. Value is determined by what property of a similar age and condition would sell for, not the replacement cost of a new item of property.
- Retirement: You are allowed, under the law, to keep unlimited amounts in qualified retirement accounts.
- Income from disability insurance or workers’ compensation: This can be an important source of income for individuals, and is exempt from liquidation by the trustee.
- Personal injury judgment proceeds: These proceeds, up to $10,000, are exempt in bankruptcy.
Bankruptcy Homestead Exemption
For a more complete list of bankruptcy exemptions, contact our law firm to schedule a free initial consultation Monday through Friday. Our lawyer can guide you through the property that is exempt and that which would be liquidated in Chapter 7. Contact us online by filling out the form, or by calling us at 662-655-1012 or toll free at 866-504-5969.
We are a debt relief agency. We help people file for bankruptcy relief under the bankruptcy code.