In Washington, consumers can file for bankruptcy to either pay off their debts through the sale of their assets or to set up a new repayment plan. The cases provide the consumers with certain protections based on the exempted value of the asset that is included. A Bankruptcy Attorney In Tacoma Wa can provide further insight into how exemptions work in these claims.
How Does Equity Play a Role in Exemptions?
In a bankruptcy claim, the equity produced by paying off a loan is protected under the bankruptcy laws, and the consumer could receive an exempted value for the equity that they have in certain assets. If the equity is higher than the debt, it is possible for the property to be exempt from the bankruptcy claim. If the equity is higher than what is owed on the property, the consumer may be able to keep this property and acquire protection through the automatic stay.
Why Should Married Couples File Jointly for Bankruptcy?
All married couples could acquire double exemptions for their property and assets. This law allows married couples to each use the full value of the exemption applied to any assets included in the bankruptcy. The homestead exemption is doubled through this strategy, and the couple could keep their home by using these extra exempted values.
What is the Limit for the Homestead Exemption?
The current limit for the homestead exemption is about $40,000 for individuals, and this exemption applies to real property owned by the consumer. However, if the consumer wants to include overdue tax payments the limit is waived. This exemption applies to the primary home as well as any unoccupied properties that the consumer wants to add to their claim.
It also applies to property that is stored inside the real property including furnishings, appliances, electronics, and standard household goods. The highest exemption for these items is no more than $2,700.
In Washington, consumers file for bankruptcy to avoid common legal actions such as foreclosure and repossession. However, they may also file to prevent creditors from filing a lawsuit to collect overdue balances. Consumers who need more answers about exemptions contact a Bankruptcy Attorney In Tacoma Wa today.
