Exempt Debts and Debtor Assets in Chapter 7 Bankruptcy

David Gomez provides coordinated estate planning services with the Platinum Law Group in Baltimore, Maryland. Experienced in bankruptcy law, David Gomez and the Platinum Law Group have extensive knowledge of Chapter 7 bankruptcy. 

For those who are considering bankruptcy, one aspect to factor into their decision is whether they qualify for liquidation bankruptcy, which allows the elimination or discharge of their full range of eligible debts. Types of debts that often cannot be fully discharged include taxes owed, student loans, child support, and those related to criminal convictions and DUI-caused injuries. 

In rare situations, debtor assets may be employed by the trustee in satisfying debts. Vehicles that are exempt include the full range of retirement accounts, from deferred compensation 401k to stock bonus and profit sharing plans. In addition, the primary vehicle and house claimed as the primary residence are exempt up to specified equity limits, as are single household items such as antiques valued at less than $675.