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CLEAN UP YOUR DEBT FOR SPRING CLEANING

On Behalf of | Mar 17, 2022 | bankruptcy, Chapter 13, Chapter 7

How many of you are afraid of losing your home or vehicle if you file for bankruptcy?

Whether you lose your property is based on how much your property is worth. Taieb Law will put you in the right bankruptcy, so you won’t lose your property.

However, the most positive news regarding bankruptcy filings is that the federal exemptions are increasing effective April 1, 2022. This will make a huge difference whether you have to file a chapter 7 or chapter 13 to keep your home, vehicle or other property and how much you have to pay to creditors if you are in a chapter 13.

For example, if Mr. & Mrs. Smith’s home is worth $350,000 and it is in both names with a mortgage balance of $260,000, the new exemptions can make a difference whether they would file a chapter 7 and keep their home or have to file chapter 13 to keep their home and pay back non-exempt equity.

The current real estate exemption under 11 USC 522(d)(1) is $25,150 and this (d)(1) exemption is increasing to $27,900 effective April 1, 2022.

Under the current example, there is non-exempt equity of $4,700 whereby a chapter 7 trustee could try to sell Mr. & Mrs. Smith’s home. Thus, the conservative approach would be for Mr. & Mrs. Smith to file a chapter 13 to protect their home.

However, effective April 1, 2022, you now have exemptions of $55,800 which would show there is no non-exempt equity and the Smiths would then be able to file a chapter 7. Thus, the increase in the real estate exemption from $25,150 to $27,900 can make a major difference for a consumer who is concerned about losing his or her home.

In addition, effective April 1, 2022, the automobile exemption increases from $4,000 to $4,450 and household goods increases from $13,400 to $14,875. Another major exemption increase is the wildcard exemption. If you own no real estate or have minimal equity in your real estate, the wildcard exemption increases from $12,575 to $13,950 for an unused real estate exemption. The general wildcard exemption increases from $1,325 to $1,475. Thus, if you own no real estate, you have a wildcard exemption of $15,425 which can cover vehicles that are free and clear or financial accounts or any other property that does not fit into the specific federal exemptions. As a result, more people will be able to file chapter 7 and not lose any of their property.

The other advantage with the increase in exemptions is that if you have to file chapter 13 to stop a foreclosure, eviction or repossession or for any other reason, you will have a better opportunity to eliminate more of your unsecured debt since the amount of non-exempt equity should be less with the higher exemptions.

Finally, at Taieb Law, we have had clients who were above the debt limitations and were unable to file chapter 13 in the past. However, section 109(e) has also increased the amount of secured and unsecured debt you may have to be eligible. This will help people who own several properties or have substantial unsecured debt due to outrageous medical bills.

If you are behind on your debts and are barely making it due to the price of gasoline, food and other outrageous expenses due to inflation, it is urgent that you contact Taieb Law for a FREE consultation so he can advise you of your rights under the bankruptcy code. Then you can file a bankruptcy petition to clean up your debts this spring.

If you can’t sleep and are overwhelmed, call us and we will help you resolve your individual problem like we have helped over 7,000 people over the last 37 years.

If you are sick, stressed out, or losing sleep over your debt, we can help you save your property and get a fresh start by filing a bankruptcy for you. For more information go to www.bankruptcywithcare.com or call us at 856-600-0819 for your FREE initial consultation.

AGAIN, PLEASE NOTE WE ARE OPEN FOR BUSINESS TO HELP YOU EITHER IN OFFICE OR VIRTUALLY. PLEASE ALSO NOTE THAT STEVEN N. TAIEB, ESQUIRE HAS BEEN VACINATED. ALSO, CREDITORS MEETINGS ARE BEING CONDUCTED VIA TELEPHONE OR ZOOM AT THE PRESENT TIME.

Steven N. Taieb, Esquire has been a south jersey bankruptcy attorney for 37 years and is board certified in consumer bankruptcy law by the American Board of Certification which is accredited by the American Bar Association.

We are a debt relief agency. We help people file for bankruptcy relief under the bankruptcy Code.