Gilbert Arizona Attorney, Lawrence B. Slater

 Question: Can I keep my property after filing a bankruptcy?

 Answer: it depends.

 A Debtor can keep all property that fits within the "exemptions, based on the "equity" in the property, and considering the "fair market value" of the property. (See below).  For married couples, each spouse can claim their own exemptions, meaning that a married couple can either claim twice the property, or twice the value of property. The exemptions cover many types of property, and some of the most common ones are the following, SOME OF WHICH WERE INCREASED IN SEPTEMBER 2013:

 -Homestead, up to $150,000 equity in a home, including mobile home or condo; or prepaid rent up to $1,000;

 -vehicle, equity up to $6,000 per debtor (one vehicle for each debtor, or $12,000 for married debtors in a single vehicle), and the exemption could go up to $12,000 per vehicle if the debtor is physically disabled;

 - up to $300 in the bank, ON THE DATE OF FILING. MAKE SURE EXCESS MONEY IS SPENT AND CLEARED THE BANK BEFORE YOU FILE.

 - household furniture and furnishings, including tv's, appliances, refrigerator, washer, dryer, up to $6,000; 

 - six months' worth of food for the family;

 - clothing up to $500 each;

 - musical instruments up to $400;

 - pets up to $800;

 - engagement and wedding rings up to $2,000;

 - books and library up to $250;

 - watch up to $150;

 - shotgun or rifle or pistol or rifle or computer up to aggregate of $1000;

 - certain money proceeds are exempt, including certain life insurance; child's earnings; child support or spousal maintenance money; disability income; annuities;

 - tools of a trade or business, up to $5,000;

 - all of retirement accounts, including IRA and 401(k);

 - school equipment;

 - and many other items of property.  

Note that "equity" is the value of property LESS the debt on the property (if any). Also note that "fair market value" usually means the value you would receive if you were to sell off your property at a liquidation sale, such as the cash proceeds you would receive if you sold the property at a garage sale. For vehicles, we usually rely on the "Private Party Value" of the vehicle under the Kelley Blue Book, found online at "kbb.com."

 Some properties are not exempt, such as extra vehicles (more than one per debtor), or vehicles worth more than the $5,000 exemption; income from tenants of rental properties; non-residential properties; investment properties (other than retirement accounts); and other valuable properties that do not fit within the exemptions.

 Tax refunds are NOT exempt. The Banruptcy Trustee will ask for a copy of your tax return, and for your tax refund check, for the year in which you file Bankruptcy, even though it will be filed many months later. If possible, it is a good idea to reduce withholdings so you minimize or eliminate a tax refund for that year. If you expect a large refund, it may be a good idea to collect and spend the refund before filing. If you file for an extension, the Trustee can still claim your refund.

  If you want to keep property secured by a debt, you usually have to pay the debt.  If you want to keep your car and it has a debt, you have to pay the debt. If you want to keep your house, you have to pay the loans. When you agee to pay these debts after a bankruptcy, you usually sign an agreement to "Reaffirm" the debt.  There are exceptions to this rule that we can discuss with you.  For example, some debts can be renegotiated or modified before they are reaffirmed. 

 All valuable property must be disclosed. Be sure to tell everything to the attorney so he can best help you to protect your property!