Bankruptcy is a relieving prospect for people who want to come ahead from the financial trauma and start fresh. The Bankruptcy Code allows for some exemptions even during bankruptcy that helps in safeguarding the assets to have a sustainable living post-bankruptcy. The property or asset that the debtor wants to safeguard or prevent from liquidation, especially in Chapter 7 bankruptcy should be claimed as exempt on Schedule C. Know more about bankruptcy schedules and statements of financial affairs on https://www.recoverylawgroup.com/bankruptcy/.
What is Schedule C?
Schedule C is one of the forms that goes along with the bankruptcy documentation. This schedule is most seen in chapter 7 bankruptcy. Additionally, the schedule C is the most important document as the debtor indicates the property he wants to preserve on this schedule. There are Federal and state exemptions that help a bankruptcy filer safeguard one or more assets during bankruptcy. The filer can either use federal or state or is bound to use only the state exemptions depending on the residency of the filer.
What are the questions in Schedule C?
Schedule C is critical as it might determine whether you will be able to retain a particular asset or will it be liquidated. Hence, it is very important to consider an attorney who can provide an in-depth assessment of the best laws/codes that can be used in the favor of the debtor to safeguard maximum assets. It is also important to have an attorney to manage the objections against the exempt properties that can be raised by the bankruptcy trustee or the lender. 888-297-6203 is your telephone number to reach some of the experienced attorneys in Los Angeles & Dallas, TX.
What does Part 1 contain?
There are 2 Parts to schedule C. The first part has 3 questions. The first question is about the type of exemption chosen, federal or state. The sections are provided for and it is not clear which section represents federal or state. A bankruptcy attorney can be of great help in settling these questions with ease. The second question asks you to list all the properties that you are claiming exemption from the exclusive list of Schedule A and B. Any property which is not included in schedule A or B cannot automatically show up in Schedule C. Another critical aspect of listing property here is specifying your extent of ownership. A percentage or the market value of the asset owned should suffice the extent of ownership.
Question 3 in part 1 is integral for people claiming homestead exemption or using wildcard exemption. If you are claiming a homestead exemption beyond the ceiling, the same should be indicated. Also, details about the property when it was acquired, how recently have you availed homestead exemption, etc. The sole objective of this exemption is to avoid people claiming an exemption for funds parked inexpensive items and cash.
What does Part 2 contain?
The part 2 is like additional sheets during the examination. This is provided pre-dominantly for completing the part 1 2nd question as it might require more space. People who have a big list of properties to claim an exemption for are more likely going to use the Part 2.
Timeframe for objections
The lenders or the bankruptcy trustee can raise suspicion regarding the exemption claimed by the debtor. The time frame for the objection is 30 days from the creditor’s meeting or 30 days from any amendments made to the Schedule C by the debtor. Hence, it is important to take the help of a good and qualified attorney and file accurate Schedule C while filing for bankruptcy. As amendments later can create an additional exposure of 30 days. Dial 888-297-6203 to get your personalized solution in minutes.