Exemptions: Most Important Consideration When Filing Bankruptcy

Section 522 governs debtors’ rights in bankruptcy as this relates to exemptions of property. This section 522, of course, makes bankruptcy more attractive than anything else does. In addition, this gives debtors protection for a fresh start. As usual, the law office of Malik Ahmad at http://www.fastbankruptcynevada.com provides a free consultation to prospective bankruptcy clients. One should have a thorough evaluation of the availability of exemptions before deciding to file bankruptcy. You do not want with too little assets to start your life after bankruptcy. As you may know, the trustee is eager to take away what is not exempted from your estate. Significant assets can be lost in bankruptcy through chapter 7. The exemption provision of the Bankruptcy Code is also related to other parts of Bankruptcy Code. For example, they give the debtor many of the trustee’s power to avoid prepetition transfers of property.

The turnover provisions of Section 542 specifically require that the property, which is in the possession of a third party, and the debtor, which can make it, exempt, must be turned over to the trustee. In addition, the right to redemption applies only to abandoned or exempt property.

What is an Exempt Property?
The Bankruptcy Code has no special definition of exempt property. The exempt property is such property, which the debtors are entitled to keep and which the trustee cannot liquidate and the debtor is permitted to keep it under Chapter 7. Other assets, which are not exempt, can be taken over by the trustee for the benefit of the creditors. As such, we suggest to only seeking legal help from qualified attorneys. Paralegal s are basically typist, cannot provide such exemption list and if provide can be defective and practicing law without a license.

What the Code does not provide?
1. The Code does not specify when exempt property loses its previous character as property of the estate.
2. The Code does not provide who shall possess exempt property during the period before the time for objections has run.
3. The courts had generally assumed that the debtor has the right to remain in possession of the exempt property throughout the case.

What is the Purpose of Exemption?
The sole purpose of exemption is to give a fresh start to the borrowers so that he/she can start his/her life with at least some foundation, and yet to provide him with home , car, furniture, jewelry, IRA accounts, and some other tools of the trade. The basic purpose is that borrowers can have life started again with dignity, self-respect to which we as decent law-abiding society deserves.

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