Federal or State Exemptions?

[Jessika1012]

If you live in a state where you can use their exemptions, do you have the option to use one or the other (Federal or your state), or can you use parts of both?

There was an article I read that stated the first, and another that stated the second. I am confused.

[nmtechie]

In my state, you can use or the other, not both

[SinkingFast]

Typically, it's an either/or scenario in States that allow you to choose. Federal or State.

But it will depend on the wording of your State's BK Exemptions Statutes.

How does the statement allowing the choice of Federal Exemptions read in your State?? That will be the question. If the wording is not clearly written either/or, there are probably attnys that would use their own "interpretations" that their clients could pick and choose, ala carte as it were, from between the State and the Federal. There may even be States where that is allowed. That certainly would give some BK Filers a leg up. More money in one area from Federal while getting more money in another area from the State.

Best to check the wording of the BK Statute and ask several attnys how it works.

[LostOne0069]

This is the one rule in the new law that's going to screw us over... New Jersey (where we now live) allows you to use federal exemptions... which allows you to use part of the homestead exemption as wild card if you don't own a home... unfortunately we moved to New Jersey from Utah back in September... and Utah doesn't allow this and has no wild card exemption.

This means that we really get no meaningful exemptions... we get to keep old and beat up furniture and a 'fridge & freezer. I had hoped that we could use the federal exemptions and thus that wild card to hang on to some wood working tools that I have... I mean, all together they're not worth more than $2k-3K (resale value) but I'm betting that's enough to make the trustee take 'em.

If we could use the federal exemptions... between my wife and myself, the wild card would cover everything we own... without it... they'll probably take the only stuff we have that's not mostly worthless.

Oh well... if we can get the chapter 7 it'll be worth it... even if we end up walking out of the court house wearing nothing but our discharge papers!