Frequently asked questions
How do I know which state's exemptions to use?
Under 11 U.S.C. § 522(b)(3)(A), you use the exemptions of the state where you have been domiciled for the 730 days (2 years) before filing. If you moved states within that period, you use the exemptions from where you lived for the majority of the 180 days before the 730-day period.
Can married couples double their exemptions?
In most states, yes. When spouses file a joint petition, each spouse claims their own set of exemptions. This effectively doubles the protection for jointly-owned property. Some states have specific joint-filing provisions.
What if I forget to claim an exemption?
You can amend your Schedule C (property claimed as exempt) at any time before the case is closed. Under Federal Rule of Bankruptcy Procedure 1009(a), amendments are freely allowed. The trustee's 30-day objection period resets from the date of the amendment.
Can the trustee take exempt property?
Not if the exemption is properly claimed and not successfully objected to. Under Taylor v. Freeland & Kronz, 503 U.S. 638 (1992), if the trustee does not object within 30 days, the exemption becomes final -- even if it was improperly claimed.
Can I convert non-exempt property to exempt property before filing?
This is called "exemption planning" and is generally permitted. For example, using non-exempt cash to pay down your mortgage (increasing your homestead equity) is legal in most circumstances. However, if done with intent to defraud creditors, it can trigger denial of discharge under 11 U.S.C. § 727(a)(2). The line depends on the facts and amounts involved.
What is the difference between exemptions in Chapter 7 and Chapter 13?
In Chapter 7, exemptions determine what property you keep -- the trustee can sell everything that is not exempt. In Chapter 13, you keep all your property, but the value of your non-exempt assets sets a floor for how much you must pay unsecured creditors (the "best interests" test under § 1325(a)(4)).
Are exemptions the same for everyone in my state?
The amounts are the same, but the total protection depends on your circumstances. Joint filers get double exemptions. Homeowners use the homestead exemption that renters do not need. Self-employed individuals benefit from tools of the trade exemptions. The right exemption strategy depends on what you own.