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lorensutton · Joined: 28 Sep 2009 Posts: 1 1.23 Dollars($)

How exactly does the Federal exemption work?

Niicss · Posted: Tue Sep 29, 2009 2:11 am Post subject:

Chapter 7 bankruptcy provides exemption on the sale of certain assets and those are known as exempt assets. The exemptions will apply only if you have equity in the property. In case, the home equity exceeds the Federal or State exemption, you may lose your property. However, if the property has no equity, it cannot be used to pay off your debts. In such a case, you can keep the home but you will have to pay off the mortgage dues. As you've mentioned that your property is free and clear, I guess the bankruptcy trustee would sell it off in order to pay your creditors.

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If I own my principal residence and it is fully paid for and I file a Chapter 7 BK can I get my home exempted based on Federal Exemption