What is a Bankruptcy Exemption?
When you file for a bankruptcy in the state of Tennessee, you are required to list all real or personal property on your bankruptcy petition. This property makes up what is referred to as your bankruptcy estate. Your bankruptcy estate includes everything – your house, your 401(k), and the clothing on your back. You may be entitled to keep or protect certain assets from the Trustee or a Creditor based on applicable State or Federal exemptions.
Determining if State or Federal Exemptions Apply
In order to determine if State or Federal Exemptions apply, one must look at where the Debtor was domiciled. If you have been continuously domiciled in a state for 730 days, it is the state’s law that is applicable. If you have not lived in the current state which you are filing continuously for 730 days, you must look at where the Debtor was domiciled for the longer portion of the 180 days prior to the 730 days before filing. Exemptions vary by State and help determine if the State allows non-residents to use its exemptions or Federal exemptions.
Exempt property is listed on Schedule C of the bankruptcy petition. Any party in interest may file an objection to the property claimed as exempt within 30 days after the Meeting of Creditors is held or within 30 days after any amendment to the schedule is filed – whichever is later. This rule is different for a Trustee. To find out what assets you can protect, contact a bankruptcy attorney.
**LEGAL DISCLAIMER: This article does not constitute legal advice and is intended for general information purposes only. For advice on legal issues, please contact Flexer Law for a FREE CONSULTATION with one of our attorneys.