Chapter 7 Bankruptcy Exceptions

Exemptions are provisions in both the federal bankruptcy laws and, often, state regulations that allow you to protect a variety of assets from being included in a Chapter 7 bankruptcy filing. For instance, federal bankruptcy laws allow you to exempt home equity (up to $125,000), employee contributions to ERISA qualified retirement plans, deferred compensation plans, tax-deferred annuities, and health insurance plans. Pennsylvania bankruptcy lawyers would advise you that, in addition, accident or disability benefits, group life policies or proceeds thereof, unemployment compensation, veterans’ benefits, and workers’ compensation are exempted if you so choose. Should you live in Wisconsin, your Milwaukee bankruptcy lawyers will inform you you’re your Homestead, up to $40,000 in equity, consumer goods and household furnishings up to $5,000 each, are also exempted from the liquidation requirements if you elect to use these features. Check your local regulations to learn about the exemptions to which you may be entitled.