Understanding Property Exemptions In Fairfax Article

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Understanding Property Exemptions in Fairfax

Fairfax bankruptcy lawyer Michael Sandler knows what to do if you are facing bankruptcy, and his practice, The Law Offices of Michael J. O. Sandler PLLC, is small enough to enable him to individually help every client. Here, Sandler talks about Fairfax property exemptions, and how a good bankruptcy lawyer can help you keep as much property as possible when you file.

Author: Michael Sandler

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If a person files bankruptcy, then he is allowed to start over with a certain amount of property. This is where the term exemption comes from – people are allowed to exempt some of their property from the bankruptcy proceedings.

While bankruptcy is based on federal and not state law, states are allowed to opt out of the federal list of exemptions and make their own rules. That is what Virginia has done. If you have lived in Virginia for at least two years, then you must use Virginia exemptions. If you have lived in Virginia for less than two years, then you will either use another state’s list of exemptions or perhaps a federal list, depending on the circumstances of your situation.

The Amount of Exemptions
There is nothing unique to a county as far as exemptions are concerned. Fairfax is a county, and everything relating to exemptions has to do with state law, so the state of Virginia itself is the source of the exemptions. Virginia is not considered a particularly generous state when it comes to the amount of exemptions, and its exemptions per individual include $5,000 of household goods. For all intents and purposes, that will cover items such as furniture, electronics, linens, and the like.

There is another $1,000 available for clothing, $2,000 for equity in a vehicle, and no specific amount for engagement and wedding rings, family bibles and heirlooms. There is also $10,000 in exemptions available for things that you use for your job. You also get a $5,000 exemption that you can use for whatever you want, which can cover cash in the bank, excess equity in your home, your car, and so forth. Most personal items are considered household goods and therefore fall under the $5,000 household exemption, which increases to $10,000 if you’re over 65 years of age.

The Role of a Bankruptcy Lawyer
In fact, few people approach the $5,000 household limit, or the clothing limit. When we talk about dollar amounts for exemptions, particularly in the form of clothing and household goods, we are not talking about replacement costs, but basically yard sale value. So if you bought a dining room set ten years ago for $2,500, it might be worth just $200 or $300 now, and that is the value you can list. In addition, most retirement plans such as 401ks and IRAs are completely exempt under federal law. Likewise, proceeds from personal injury claims are exempt.

Nevertheless, unlike most other states, which have higher amounts when it comes to the property for which you are exempt, Virginia is considered a creditors’ state, as the legislature has decided that only a certain amount of property can be exempted. For this reason, it is important that you hire a good bankruptcy lawyer who will represent you to work with state legislature to get the amount raised.

This article is for informational purposes only. You should not rely on this article as a legal opinion on any specific facts or circumstances, and you should not act upon this information without seeking professional counsel. Publication of this article and your receipt of this article does not create an attorney-client relationship.

About Author

Michael Sandler is a writer for Yodle Law Marketing, a business directory and online advertising company. Find alawyer or more lawyers articles at Yodle Consumer Guide.

Article Source: http://www.1888articles.com/author-michael-sandler-33122.html

Understanding Property Exemptions in Fairfax