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    #1

    Federal Exempt? My lawyer said that's our case...

    We are filing a ch 7 in Dec or Jan and because we've moved around so much, our lawyer said that we're considered a federal exemption because of this. He also said that because of this we are able to have up to 10k in our checking account at the time of the 341 (if I had that much ever in my account, I wouldn't be in the mess), nevertheless...it seems weird. Any experience with this?

    Thanks
    Tags: None
    #2
    According to Bankruptcy Exemptions at http://www.bankruptcyaction.com/bank...exemptions.htm -
    The state you use for your exemptions is:
    - The state you lived in for the 730 days (2 years) before filing; or
    - If you did not live in a single state in the previous 2 years you use the state where you lived the majority of the 180 period preceding the 2 year period; or
    - If the preceding renders you ineligible for any exemptions then the debtor is allowed to choose the federal exemptions.

    You must be in the last group and that's why you can use the federal exemptions. Lucky you!
    I am not a lawyer and this is not legal advice nor a statement of the law - only a lawyer can provide those.

    06/01/06 - Filed Ch 13
    06/28/06 - 341 Meeting
    07/18/06 - Confirmation Hearing - not confirmed, 3 objections
    10/05/06 - Hearing to resolve 2 trustee objections
    01/24/07 - Judge dismisses mortgage company objection
    09/27/07 - Confirmed at last!
    06/10/11 - Trustee confirms all payments made
    08/10/11 - DISCHARGED !
    10/02/11 - CASE CLOSED
    Countdown: 60 months paid, 0 months to go

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      #3
      Thank goodness....finally, something decent happened for us! I just wanted to double check because it really sounded too good to be true.

      Comment

        #4
        Yeah.

        There's been someone post here some time ago that did that. Filed Federal because of several moves. Worked for them.

        That's part of the Code. When you don't qualify for any particular State's Exemptions then you get to use Federal. As an example,....... You're in the military and get stationed around a lot. You'd go Federal.
        Filed Ch 7 - 09/06
        Discharged - 12/2006
        Officially Declared No Asset - 03/2007
        Closed - 04/2007

        I am not an attorney. My comments are based on personal experience and research. Always consult an attorney in your area to address concerns related to your particular situation.

        Another good thing about being poor is that when you are seventy your children will not have declared you legally insane in order to gain control of your estate. - Woody Allen...

        Comment

          #5
          One of the ladies ahead of us at our 341 meeting had to use federal exemptions since she had moved around so much. The trustee questioned her on where she had lived over the past several years to verify that she was using the right exemptions.
          Filed: 10/26/2006
          Discharged: 03/05/2007
          Closed: 5/19/2008 - Asset case due to balance transfer and income tax refund

          Comment

            #6
            Some states also allow you to choose either federal or state exemptions. But it has to be one or the other. In Texas this is the case and since we didn't have to worry about the equity in our home or vehicles, our lawyer had us use federal exemptions, it was just the first set of exemptions we began looking at and there was no reason to use the states. But in your case if you have moved around quite often then federal is the set of exemptions you get to use.
            "Try to save money. Someday it may be valuable again." - Anonymous

            Comment

              #7
              BKTango, did you find other advantages to having the federal exemption?

              Comment

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