Maui Bankruptcy Exemptions
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When it comes to bankruptcy, you need to understand that it is not the end of the world like many people assume. Bankruptcy was created to help you. Not hurt you. Under the bankruptcy code in Maui, residents can retain their property by exempting it from creditors. Our bankruptcy attorneys at the Law Offices of Blake Goodman PC can help you understand everything you need to know about bankruptcy exemptions and how to properly take advantage of them.
If your income can’t cover your bills, then filing for bankruptcy will help you to gain control over your finances. Every person deserves a fresh start, and filing for bankruptcy gives you this opportunity. We know that filing for bankruptcy in Maui can be difficult at the start. But once you get an understanding of the process, you will be able to gain the benefits.
Bankruptcy Exemptions to Protect Property in Maui
Whether you’ll lose your property or get a chance to keep it is decided by whether you file Chapter 7 or Chapter 13 bankruptcy. By looking at the two exemption schemes, you can find out which assets you can protect when you file for bankruptcy.
According to Chapter 13, you can keep all your property. But you will have to pay the non-exempt tax value of the property throughout the period of your debt repayment. The couple or spouse who files for a joint bankruptcy gets a double exemption amount in each category. As long as both the partners have an ownership interest in the asset, they can pay jointly for that asset.
Maui Homestead Exemption
If you are head of the family or a person over 65, then you can get an exemption of $30,000 of equity. But you must not own any other property in Maui more than one acre. The head is determined by the IRS as they follow the standard for the head of household. In case you are not the head of the household, the equity amount will be $20,000 in your home. This amount won’t get double if you apply for joint bankruptcy.
Other Bankruptcy Exemptions
On one motor vehicle, you can protect up to $2,575 of equity. House furniture, appliances, books, and clothes which are used by your family are considered personal property and are also exempt up to a total of $1,000 in value.
IRAs and ERISA qualified accounts, along with the firefighter’s pensions, police officers' pensions, employee’s pensions, and public officer’s pensions are exempted. The uniforms, tools, books, and other equipment you need for your business are also exempted. Health, accident, sickness benefits, endowment policy, annuity contract, and all other types of insurance are exempted from the debt.