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Difference Between Exempt & Non Exempt Assets?

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    Difference Between Exempt & Non Exempt Assets?

    Howdy and thanks in advance for your help. When listing assets how do I know what is exempt and non exempt?

    #2
    You really don't. First you list the assets on Schedule A or Schedule B, and then you attempt to apply various exemptions on Schedule C. Anything that has value, from your bedroom set to your 401(k), must be scheduled in the petition. Each State has a different set of exemptions and some States allow the use of the Federal Exemptions.

    If you are considering filing as a Pro Se individual, I highly suggest that you seek out the Pro Bono clinic at your local bankruptcy court (if it's available). Otherwise, I next suggest that if you have a bunch of assets that could be exposed to liquidation in a Chapter 7, that you hire an attorney. If you get past those two things and still want to file Pro Se, then you have a bunch to learn. I recommend obtaining Nolo's book "How To File for Chapter 7" at your local library, bookstore or online (including e-books).

    Exemptions and protecting property is a major part of a bankruptcy filing. You have to become familiar with the available exemptions for your State and then try to apply that to your property (money in bank, cash stuff in the mattress, and even some life insurance policies are all property).

    Oh, Welcome to BKForum!
    Chapter 7 (No Asset/Non-Consumer) Filed (Pro Se) 7/08 (converted from Chapter 13 - 2/10)
    Status: (Auto) Discharged and Closed! 5/10
    Visit My BKForum Blog: justbroke's Blog

    I am not an attorney. Any advice provided is not legal advice.

    Comment


      #3
      Thanks again. Sincerely appreciate the response. Sorry for the long winded response. I do have an atty. looking to file 7 but likely will be forced into 13 because of income being a little over the limit. If forced into 13 I may just deal with the creditors because I’m deathly afraid of 13. Business went bad and I personally guaranteed a couple of equipment leases $50k left. Signature loan at bank $25k, amex $25k and lease space $150k left. All these are late/default. Also my Normal personal debts (all current payment status) are about $83k for 2 vehicles, $23k loans / credit cards, $293k mortgage. Again these personal items are current at this time. Any suggestions or advice would be monumental and a blessing. Even if the advice is to go jump off a cliff lol.

      I’m in the process of filling out his (lawyers)21 page worksheet. The “asset” section asks me to list everything in my home room by room. Then goes on to mention non exempt and exempt assets without clarification. Asks me to list market value - what I could sell it for. I know he mentioned these things to me but was unsure how thorough I should be. He’s in Egypt at the international bankruptcy conference so I don’t want to bug him. Do I list phone charger plugs and cords? Power strips / surge suppressor thingy’s? Is a built in bookshelf part of the house / exempt, or do I need to list and value that? List the wall mount for the TV? I think my only real items of value are a couple of tag watches. 3 art canvas’s in my closet by Thomas Kinkade, a ancient upright piano in terrible condition that appears to be worth about $250, and the wife’s wedding ring. But if she’s not filing does That need to be listed as it is hers? I also have 2 pistols and a .270 rifle most expensive firearm is 3 years old and I paid $550 for it brand new. The rest of my items are really small in value or I wouldn’t give more than $100 for anything else I own. Like our bedroom furniture is old junk that has broken drawers - hand me down furniture from her parents etc...my children’s bedroom furniture is decent but it’s baby crib / toddler bed type stuff. I put a decent value on dishes/ pots and pans but really that’s all I can think of. Linens/towels - mine kinda suck and are many years old. I don’t know what I would pay for somebody’s used towels. Not a whole lot if anything. I’m being thorough and listing every single thing, but the value of a used toaster just isn’t appealing to me. Do I make sense or do I need a refocus on how I’m doing this? I have a 10 year old computer that’s not really worth a bunch to me ya know? How do I value dvd/blue day players when they are being phased out? Im the guy that would have a garage sale and sell my clothes for less than I paid to have them dry cleaned just to make others happy. I’m not good at the valuation thing but I want to be correct for this process.
      Thoughts, or guidance of what I can expect and how I need to view this going forward? Blessed and thankful to have found this forum.

      Comment


        #4
        I generally grouped things together. This is what I used.
        • All real property listed fully with the legal description and address
        • All motor(ized) vehicles listed with full year, make and model
        • Miscellaneous Clothing (all my clothing)
        • Miscellaneous Media (all my CDs, DVDs, books...)
        • Miscellaneous Household Goods (all my pots, pans and dishes, couches, beds, etc.)
        • Miscellaneous Electronic Equipment (stereo, iPod, iPad, etc)
        • Computers (self describing)
        • Any television worth more than $200 I itemized (e.g. 50" Plasma TV worth $350)
        That was generally how I did everything. By lumping them into categories like that, it was easier to come up with a value and then to be able to figure out what could be exempted. Since I was filing Pro Se, I had to determine what was exempt and under which legal theory (basically which statute/law) granted me the exemption. I kept a spreadsheet so I could easily have it calculate the totals.

        Everything that is not a car or a home should be valued at yard-sale prices. What would you pay someone for a used DVD player? $25??? What would pay for a 10-year old computer? $10??? (I wouldn't buy either of those from you, so that should give you the picture. Everything should be worth at least $1... in scrap.)

        My property was also old, dated, and generally not worth what I would attempt to get at a yard sale. I did list my household goods at $800 but it included pots, pan, dishes, silverware, and furnishings.
        Chapter 7 (No Asset/Non-Consumer) Filed (Pro Se) 7/08 (converted from Chapter 13 - 2/10)
        Status: (Auto) Discharged and Closed! 5/10
        Visit My BKForum Blog: justbroke's Blog

        I am not an attorney. Any advice provided is not legal advice.

        Comment

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