In chapter 7 bankruptcy, what do you get to keep?
In chapter 7 bankruptcy, what do you get to keep? Featuring Attorney Paul Urich.
Attorney Tom Olsen: If you file a Chapter 7 bankruptcy, what is it that you get to keep? I know you can't. What is it you get to keep as far as your piece of property, as far as your furniture, as far as your car goes?
Attorney Paul Urich: All right, if you have a house, the equity in the house provided that you have lived in the house for two years in the day prior to filing or the house the down payment came from proceeds from another homestead, all that equity is exempt. In Florida, it's limitless whereas other states, not so much, Delaware doesn't even have a homestead exemption. Now, if you have the house, you get $1,000 personal property exemption, $1,000 automotive exemption, all your 401ks, IRAs and ERISA approved retirement accounts are exempted. Life insurance proceeds that you are going to leave to someone else are exempted and there are some other minor exemptions here and there.
Now, if you do not have a house, then you qualify for an additional $4,000 worth of personal wild card and it can be almost anything.