What is the release of property from bankruptcy?

Often, people who want to file for bankruptcy, faced with the excitement, that if they served in bankrutski court, they will take as a private property, and the house in which they live. Nothing could be further from the truth. This false belief has led many honest men to avoid bankruptcy and continue to live your life with devastating debt. The reality of the situation is that the Federal Bankruptcy Code allows you to store many assets, including your home, using what is called the exemption from bankruptcy.

The exceptions are the provisions recorded in the various federal and bankruptcy laws. They claim that some types of property should be excluded from the bankruptcy proceedings. Each country is allowed to choose what is and is not, covered both exempt assets. Determining which of them are used, the first thing to understand is that in your case, the law of the state. It will not necessarily be the state in which you live, if you have recently moved. Federal law has a provision for the determination of the place of residence for the purposes of bankruptcy. The court is considering where you have lived for the previous 180 days before the date of application, and uses the rules of the State where you live most of the time. To illustrate, if you filed your business on July 1, you moved from Arkansas to Oklahoma 2 February of the same year. You must have lived in Oklahoma most of the 180 days. Therefore, in your case, bankruptcy rules are in Oklahoma. But let's say you've moved on May 12. In this case, only the rules of Arkansas will be applied. Setting a current state law, you have to find out if you are limited to only those rules of bankruptcy States or in the alternative, if you also have the right to use federal regulations. Some states, like Arkansas, allow debtors to choose between the State and Federal regulations, it may be advantageous depending on the type of property that you want to release. In some states, including Oklahoma, you want to use only the rules of the state.

Once you determine which set of regulations deals with your case, you will be able to find out what property is exempt these rules. Oklahoma has a wide set of rules covering general types of property. Some of the most common benefits, which are used in case of bankruptcy of Oklahoma, with & # 39 are:

1. Manor: the debtor has the right to preserve their principal place of residence, whether it is a house built on land that belongs to the debtor, or the production house.

2. Car: the debtor (or a debtor, in the case of a joint bankruptcy) has the right to liberate its interest to the automotive vehicle to $ 7,500. It is the capital of the debtor in the vehicle, so that, regardless of the value of the vehicle, minus the outstanding debt.

3. Household goods and items of inter & # 39; career: people apply, capable of storing the furniture, including kitchen utensils, a small personal computer, beds, TVs, and more.

4. Gun: the debtor is entitled to retain up to $ 2,000 value of the weapons, which is mainly used for personal, family or home defense or sport. Guns that are stored solely for investment or not personal, family or household purposes, do not apply.

5. Clothing: personal clothing of the debtor and there & # 39; and the debtor is released.

6. Tools and Equipment: the debtor can keep the tools used for farming or to trade or profession (eg, carpenters and machine tools).

7. Income: You wages for work not included in the credit requirements. A checking or savings account into which you deposit credit on wages, is maintained. Similarly, loans with income tax assets are considered exempt.

8. Jewelry: your wedding rings and jewelry of low value that does not exceed $ 3,000.

9. Savings in the pension: means incorporated in or IRA 401 (k) or other devices retirement savings.

In Oklahoma, a few other types of property covered in addition to the general set out above. In addition, your state may have different rules than in Oklahoma. For more information, you should contact a lawyer for bankruptcy in your state.

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