Maximizing Your Bankruptcy Exemptions In Washington

All bankruptcy cases filed in Washington now are applicable to Washington bankruptcy exemptions as per the Revised Code of Washington. Bankruptcy is filed in order to get a fresh start for your crumbling financial situation. When you file bankruptcy under Chapter 7, your assets are used for liquidation to clear your debts. However, certain assets are exempted from being liquidated and these exemptions vary from state to state. This exemption is allowed in order to retain basic possessions to proceed with your life further.

Claiming Exemptions

When you are filing your bankruptcy case under Chapter 7 code, you will have to submit a schedule of properties you claim for exemptions. In this schedule, you will have to give a description about the property and the law used for claiming its exemption. In this schedule, the value of the property must also be mentioned in order to check the qualification for exemption. In Washington you have an option of choosing to file exemptions either under federal or under state exemptions but cannot be combined.

Maximizing Washington Bankruptcy Exemptions

Prepare a List - You will have to prepare a list of all properties that may become bankruptcy estate. You have to list down all personal property and real estate properties like your residence, rented or vacation properties, automobiles, bonds, cash and stocks. Also prepare another list that includes the furniture, house hold and electronic appliances, clothing and other personal belongings.

Order the items as per Preference - Now order the items in the prepared list as per your preference. That is you will have to place property with more personal importance at the top and then proceed down.

Match with Exemptions - In your sorted list of properties, you need to add two more columns, one for state exemptions and another for federal exemptions. Find out which items are protected under either of the exemptions. Then decide which exemption you are going to opt for by looking at an exemption which favors most of your listed properties.

Transfer the Fund to an Exempted Item - If you have considerable amount in a non-exempt property, then you can liquidate it yourself and put it in an exempted property (for example, homestead) if you have not crossed the limit on that exempted item.

Therefore, you can keep most of your property with you though you apply for bankruptcy under Chapter 7 if you use the exemptions cleverly.

Getting Legal Help

There are numerous Bankruptcy lawyers whose legal advice and services can be used while filing bankruptcy in Washington. They will analyze your case personally and provide you with various options of maximizing the exemptions in your case with respect to the exemptions in Washington.

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