How to Complete a Schedule C Forms for Property Exemptions

When you file for bankruptcy, you must submit Form Schedule C with your application. Form Schedule C is the form that lists the properties you claim as exempt. You have to describe the property, explain what law it falls under and the value of the property you are claiming for exemption.

State & Federal Exemptions

There are state and federal exemptions. In most states, you have to use the state exemptions but some states allow you to select either the federal or the state exemption. If you have a choice, consider the value of the property that you most want to keep and then determine which exemptions will allow you to keep it or at least get the greatest value for it. If you are using state exemptions, you can also use the federal non-bankruptcy exemptions.

Claiming an Exemption

On the top of Form Schedule C, there are two boxes labeled "522(b)(1)" and "522(b)(2)". Select the box labeled “533(b)(1)” if you are choosing federal exemptions. The box labeled “522(b)(2) must be selected if you are choosing state exemptions.

Describing the Exemptions

You must provide a description of the property you are claim as exempt in the first column. If you are claiming an exemption for an entire category of personal property such as clothing, you must enter clothing. There is no need to specify each and every item of clothing. The description should be the same as the description you provide on Schedule A or B.

For each item of property you are claiming as exempt, enter the citation (number) of the specific law that creates the exemption, as set out on the exemption list. You must enter the citation in the second column. Some states have a “wildcard” exemption that can be used for any property as a supplement. Remember to use its law number and if you are combining part or all of a wildcard exemption with a regular exemption, list both citations. In the third column, insert the full exemption amount allowed, up to the value of the property. In the fourth column, enter the current value of the property without deducting the exemptions.

Getting Legal Help

Form Schedule C is very important. Do not treat it lightly. If you fill it incorrectly, your exemptions will not be accepted and your bankruptcy petition can be dismissed. Hire an experienced bankruptcy attorney. The attorney will prepare your petition and fill the Form Schedule C correctly and ensure that you get the exemptions you are entitled to.

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