What Are Exemptions?
Exemptions in a bankruptcy case equate to assets a person is allowed to keep. Assets commonly sought for exemption status include vehicles, residential properties, and personal computers. Those items which allow a person to continue to function, such as their home and transportation, are particularly valuable when seeking exemption status. When considering what exemptions might apply to Longview WA residents, it is always best to consult a bankruptcy attorney.
Federal versus State Exemption Laws
There are federal guidelines for determining exemptions in a bankruptcy. Congress has allowed each state to opt out of these federal guidelines. Washington State does have its own set of exemption guidelines, however it allows an individual to choose between either the state or federal guidelines. This choices gives each person the opportunity to review both guidelines and select the one which best protects their assets.
Exemption per Bankruptcy Chapter
Chapter 7, often called liquidation, appoints a bankruptcy trustee. This person oversees the selling of assets and distributes the money made across the creditors. Those assets which are exempt from liquidation will remain in the possession of the debtor.
In chapter 13 bankruptcy filed in Washington a person generally keeps most of his or her possessions. Chapter 13 is based on a repayment plan and therefore allows individuals to keep assets while paying a percentage of the amount owed to creditors. The advantage of an exemption status in a chapter 13 bankruptcy is that exempt items are left out of the repayment structure.
In general, exemptions mean keeping assets in chapter 13 bankruptcy and saving money in chapter 7. Going over the differences between Washington State exemptions and federal exemptions and selecting the best possibility for a specific situation is an important decision. In some cases it is even possible to select Washington State exemptions and include some federal exemptions in addition as well. Speaking with a local bankruptcy attorney is the best way to find out which are the best bankruptcy exemptions to select in Washington.
Longview WA is a city of cultural appreciation and recreational activities. Under the category of culture, the city throws an annual International Festival. This celebration highlights song, dance, food, and art represented by multicultural perspectives. The Columbia theatre is also home to multicultural performances. Located at the confluence of the Cowlitz and Columbia rivers, there is a wealth of recreational options, from fishing, to water skiing, to wine tasting. All this makes Longview WA is a town with a lot to offer.