• Life Insurance- 11 U.S.C. § 522(d)(7)-(8). This section exempts only an unmatured life insurance contract owned by the debtor for the benefit of the debtor or a dependent of the debtor. A debtor can exempt up to $16,850 of the cash surrender value of the unmatured life insurance contract. • Disability, Retirement, and Other Benefits- 11 U.S.C. § 522(d)(l 0). This section exempts the income a debtor receives from: Social Security. Unemployment Compensation. Public Assistance. Veteran's Benefits. Disability, illness, or other unemployment benefits. Alimony and child support. Pensions. • Rights to Compensation for Injury or Losses- 11 U.S.C. § 522(d)(ll). The debtor's right to receive, and property traceable to, payments for various types of injury and loss can be claimed as exempt. These include: Crime-victim compensation. Wrongful death and loss of future earnings to the extent reasonably necessary for the support of the debtor Life insurance payments needed for the support of the debtor. Personal injury compensation payments not exceeding $31,575. • Retirement Funds- 11 U.S.C. § 522(d)(l2). Certain retirement funds to the extent that they are in a fund or account that is exempt from taxation under sections 401, 403,408,408A, 414,457, or 50l(a) of the Internal Revenue Code are exempt. This is not a complete list of exemptions allowed under federal Law. A claim for all exempt property must be made in Schedule C. If the debtor fails to claim property as exempt, the exemption is lost for that property, and the property can be taken and liquidated by the Trustee for the benefit of the creditors. |
Sources
This information is general and is not legal advice. Amounts are adjusted periodically; consult an attorney about your case.
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Federal Property Exemptions
Part 2 of 2