Help with Bankruptcy Forms: Schedule C - Property Claimed as Exempt

Schedule C of the bankruptcy forms is one piece of documentation that needs to be filed as part of your bankruptcy petition. In this particular form, you will be listing property you believe is exempt, or unable to be claimed and sold back to creditors, during the bankruptcy process. Property that is exempt must fall within the state or federal guidelines for exemptions, depending on which type of exemptions you plan to take.

Filling Out Schedule C

Filling out the Schedule C form is a relatively simple process, but whenever possible it is important that an attorney work through the form with you, to ensure that you are filing it out properly. You can only claim property that is exempt according to law. The following tips will help you to fill out this form properly.

At the top of the Schedule C is a box labeled "522(b)(1)" for federal bankruptcy and "522(b)(2)" for state bankruptcy. Check the box for the exemptions you are taking, one or the other. In general, you should take the exemptions that provide you with the most asset protection. Your attorney can help you to determine which is best for your case.
In the next portion of the form, you will need to describe the property you are claiming as exempt. On bankruptcy Schedule B or A, you may have already listed this property and therefore you should use the same terminology when completing Schedule C.
One the next column, you will need to enter the exemption law that allows you to protect this property. In order to fill this in, you need to know the bankruptcy law well. In short, you need to mark which specific law identification protects the property.
In the next column, enter the value of the exempt property. It is important that an accurate value is used here. An appraisal may be necessary in some cases. You may have to show documentation for your reasoning behind the value.
Finally, list the current market value of the exempt property next. Here, you are listing the property's likely sales value, which may be significantly lower than the value of the property. This is the amount someone will actually pay for the property.

Get Legal Help

It is important to get legal help when filling out Schedule C and other bankruptcy forms. Mistakes here could cause the case to be dismissed even if accurate information would have helped the case move through the process. An attorney can help you to achieve these goals.

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