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Exemptions can help protect your property when you file for bankruptcy, say lawyers of Dallas based law firm. In the case of chapter 7, they determine what you can keep; while in chapter 13, they determine what you pay to the creditors through the repayment plan. Different states have different sets of exemptions that can be used by filers. Some states even allow bankruptcy filers the option of choosing between state and federal bankruptcy exemptions. In case you choose the state’s bankruptcy exemptions, you have the choice of getting another set of exemptions to protect additional property. These are known as federal non-bankruptcy exemptions. Unfortunately, these exemptions are not available if you choose federal bankruptcy exemptions!
What are federal non-bankruptcy exemptions?
The various federal non-bankruptcy exemptions are code references to Title 11 of the U.S. Code. These include:
Retirement Benefits
- 5 USC § 8346 – Civil Service employees
- 22 USC § 4060 – Foreign service employees
- 10 USC § 1440 – Military service employees
- 45 USC § 231m – Railroad workers
- 42 USC § 407 – Social Security benefits
- 38 USC § 3101 – Veteran’s benefits
- 50 USC § 403 – CIA employees
- 38 USC § 1562(c) – Military Medal of Honor Roll pensions
Survivor’s Benefits
- 10 USC § 1450 – Military service
- 28 USC § 376 – Judges, U.S. court directors, judicial center directors, and U.S. Supreme Court Chief Justice’s administrative assistants
- 33 USC. §775 – Lighthouse workers
Death and Disability Benefits
- 5 USC § 8130 – Government employees
- 33 USC § 916 – Longshoremen, harbor workers
- 42 USC § 1717 – War, risk, hazard, death, or injury compensation
Misc.
- 10 USC § 1035 – Military deposits to savings accounts (while on permanent duty outside the U.S.)
- 15 USC § 1673 – 75% of earned but unpaid wages or 30 times the federal minimum hourly wage; the greater of these two. (Judge may approve more)
- 25 USC § 410 – Indian lands or homestead sales or lease proceeds
- 25 USC § § 543 & 545 – Klamath Indian tribe benefits for those living in Oregon; agricultural or grazing lands to $5,000
- 38 USC § 1970(g) – Military group life insurance
- 45 USC § 352(e) – Railroad workers’ unemployment
- 46 USC § 11110 – Seamen’s clothing
- 46 USC § 11111 – Debts of a seaman incurred while on a voyage
- 46 USC § 11109 – Seamen’s wages (except for spousal or child support)
- 38 USC §1970(g) – Life insurance benefits for serviceman’s Group Life Insurance or Veteran’s Group Life Insurance
You can check the state bankruptcy exemptions available in your state to get an idea of what can be protected during bankruptcy proceedings. Call (888-297-6203) to consult with experienced bankruptcy attorneys.