Wildcard exemption as the name suggests is a big bump in hope for a debtor while he/she is trying to protect a particular asset. The home is a very important asset which is often included in the exemption and until the dues are cleared on timely basis, the home is usually safe while option for Chapter 7 bankruptcy. The key assets in question could be car, boat or a truck or any other asset the debtor wants to protect from liquidation. In some situations, it might be an electronic item, second vehicle, or no matter what a wildcard exemption might just proof beneficial for the debtor to hold on to the asset.
What is a wildcard exemption?
There might be some exemptions specific to states that may allow for a certain sum of exemption based on the class of the asset. For instance, some state’s wildcard exemption might provide exemption of up $6k for cash or other properties like car and $5k for other personal belongings that may include electronic devices, boats, etc. This means a total of $11k per head and $22k for a married couple can be safeguarded against the liquidation attempts. This a great way to avoid concealing of assets and to ensure some of your dearest assets be defended against liquidation under Chapter 7.
How to avail the wildcard exemption?
The chapter 7 bankruptcy form allows for a section to include the list of exempt assets, the assets which you want to prevent from liquidation should be listed there. In order to learn and find some attorneys who can file your bankruptcy form accurately, log on to https://www.recoverylawgroup.com/bankruptcy/. Some of the points to keep in mind while considering wildcard exemption is as follows-
- The $5k personal property exemption cannot be used on a real estate property
- The $6k exemption can be used across any property including real estate, cash, vehicle, or even personal property. Cash can be cash in hand, savings a/c, checking a/c or any liquid investments as well
- Only primary residence or rental property can be safeguarded in real estate property exemptions
- The total exemption of $22k is available for disposable of a married couple. However, the wildcard exemption of one spouse cannot be used on the other spouse’s asset. The exemption is applicable specifically towards individual assets of each spouse
- Also, important thing to note is claiming an exemption for an asset might help in safeguarding the asset from liquidation but does not waive off the liability or debt associated with the asset
- If you do not want to keep the exempted asset, the bankruptcy trustee can pay you cash from the proceeds of the exempted asset
- Other assets can also be prevented from liquidation if they do not add substantial value and the cost of auctioning, commissions, etc., do not make a viable sense.
There can be other ways of safeguarding the assets and ensuring maximum benefit or relief for the bankruptcy filer. The best experts across Los Angeles and Dallas, TX are available on your fingertips at 888-297-6203. You can reach out to the experts and discuss your scenario and the best possible outcomes.