Establishing Exemptions With A Bankruptcy Lawyer In Glendale, AZ

by | Mar 18, 2014 | Lawyers

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The first step for filing a claim is to contact a Bankruptcy Lawyer Glendale AZ. Next, the consumer fulfills the obligations needed to qualify such as completing credit counseling. The attorney reviews documents required for this case to include income tax returns for two years, bank account statements, and mortgage contracts. Consumers can avoid foreclosure or repossession through bankruptcy as the judge initiates an automatic stay after claim approval. This action prevents all legal actions, and creditor claims to recover the property from the consumer and allows him or her to continue using the property at their own discretion.

Property Exemptions
Property exemptions are established based on the amount of equity that has accumulated. Equity is the value calculated by deducting the mortgage balance from the market price of the property. The judge determines whether the homestead exemption applies to the property based on the equity valuation. When the equity exceeds the allowed exemption amount, the bankruptcy trustee can choose to liquidate the property to recover funds to settle debt.

Homestead Exemption and Real Estate
The homestead exemption applies to the real estate property used as the primary residence. It is not limited to a specific property type; the term homestead applies to apartments, houses, and mobile homes. The maximum exception is $150,000. Homeowners who choose to sell their home have an eighteen-month exemption period between this transaction and the acquisition of a new residence. Arizona State Statute 33-1102 requires a record of a homestead declaration prior to any efforts to sell the property. Married homeowners cannot claim a double exemption for this asset.

Personal Property
Personal Property is outlined in Arizona Statute 33-1123; it allows doubling for married consumers. The exemption for furnishings, major appliances, and personalized items cannot exceed $4,000. Clothing offers an exemption of $500; wedding jewelry cannot exceed $1,000 in equity value. Any vehicle owned by the consumer is exempt up to $1,500 if operational and $4,000 when it is disabled.

Life Insurance Policiesbl
Life insurance policies with a cash value of $1,000 per dependent qualify for exemption of up to $25,000. Policies that are valued at $2,000 have a maximum exemption of $10,000. Any proceeds generated through a life insurance policy is exempt in bankruptcy when the beneficiary is either the spouse or a child. Any consumers who wish to discuss bankruptcy may Browse Site to contact a Bankruptcy Lawyer Glendale AZ.

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