CHAPTER 6: COMPLETE AND FILE YOUR BANKRUPTCY PAPERWORK 151
any loan against them, and whether they are insured.
Husband, Wife, Joint, or Community. if you’re not married, put “n/a” at the top of the column.
if you are married and live in a community property state, then property acquired during the marriage is community property and you should put “C” in this column. gifts and inheritances received by one spouse are separate property, as is property a spouse owned prior to marriage or after separation. identify this property with an “h” (for husband) or “w” (for wife), as appropriate.
if you live in any state that is not a community property state, write “j” if you own the property jointly with a spouse, and “h” or “w” if a spouse owns that property as an individual.
Current Value of Debtor’s Interest in Property, Without Deducting any Secured Claim or Exemption. you can take the information requested here from the Property exemption worksheet in Ch. 3. list the replacement value of the property, without regard to any secured interests or exemptions. For example, if you own a car with a replacement value of $6,000, you still owe
$4,000 on the car note, and your state’s motor vehicle exemption is $1,200, put down $6,000 for the market value of the car.
Total. add the amounts in this column and put the total in the box at the bottom of the last page. if you used any continuation pages in addition to the preprinted form, remember to attach those pages and include the amounts from those pages in this total.
CHAPTER 6: COMPLETE AND FILE YOUR BANKRUPTCY PAPERWORK 153
In re and Case No. Follow the instructions for schedule a.
Debtor elects the exemptions to which the debtor is entitled under: if you’re using the federal exemptions, check the top box. everybody else, check the second box. see Ch. 3 for information on the new residency requirements for using a state’s exemptions and tips on how to choose between the federal and state exemption systems. as we point out in Ch. 3, if you are living in a state that offers the federal exemption system, but you haven’t been there long enough to meet the two- year residency requirement, you can choose the federal system (and check the top box on schedule C).
Property out of state. You’ll generally choose the exemptions of the state you live in when you file as long as you’ve lived there for at least two years. If you want to protect your equity in a home in a state other than the one you file in, see a lawyer.
Check if debtor claims a homestead exemption that exceeds $136,875. Check this box if:
• the exemptions of the state you are using allow a homestead of more than $136,875
• you have more than $136,875 equity in your home, and
• you acquired your home at least 40 months prior to your bankruptcy filing date.
if you didn’t acquire your home at least 40 months before filing, and you didn’t purchase it from the proceeds of selling a home in the same state, your homestead exemption may be capped, regardless of the exemption available in the state where your home is located. see Ch. 4 for detailed information on the homestead exemption cap.
the following instructions cover one column at a time. But rather than listing all your exempt property in the first column and then completing the second column before moving on to the third column, you might find it easier to list one exempt item and
complete all columns for that item before moving on to the next exempt item.
Description of Property. to describe the property you claim as exempt, take these steps:
Step 1: turn to Ch. 3 to find out which exemptions are available to you and which property to claim as exempt (if you have already used the Property
exemption worksheet to identify your exempt property, skip this step).
Step 2: decide which of the real estate you listed on schedule a, if any, you want to claim as exempt.
remember that state homestead allowances usually apply only to property you are living in when you file, but that you can use a wildcard exemption for any type of property. use the same description you used in the description and location of Property column of schedule a.
Step 3: decide which of the personal property you listed on schedule B you want to claim as exempt. For each item identified, list both the category of property (preprinted in the types of Property column) and the specific item, from the description and location of Property column. do not include the location of the property. if the exemptions you are using apply to an entire category, such as clothing, simply list “clothing”
as the item you are exempting.
Specify Law Providing Each Exemption. you’ll find citations to the specific laws that create exemptions in the state and federal exemption lists in appendix 1.
remember to use the rules for choosing your exemp- tions explained in detail in Ch. 3.
you can simplify this process by entering, anywhere on the form, the name of the statutes you are using.
the name is noted at the top of the exemption list you use. For example, you might type “all law references are to the Florida statutes annotated unless otherwise noted.”
For each item of property you are claiming as exempt, enter the citation (number) of the specific law that creates the exemption, as set out on the exemption list. if you are combining part or all of a wildcard exemption with a regular exemption, list both citations.
if the wildcard and the regular exemption have the same citation, list the citation twice and put “wildcard”
next to one of the citations. if you use any reference other than one found in the state statutes you are using, such as a federal nonbankruptcy exemption or a court case, list the entire reference for the exempt item.
Value of Claimed Exemption. Claim the full exemption amount allowed, up to the value of the item. the amount allowed is listed in appendix 1.
Bankruptcy law allows married couples to double all exemptions unless the state expressly prohibits it. that means that each of you can claim the entire amount of
CHAPTER 6: COMPLETE AND FILE YOUR BANKRUPTCY PAPERWORK 155
each exemption, if you are both filing. if your state’s chart in appendix 1 doesn’t say your state forbids doubling, go ahead and double. you are entitled to double all federal exemptions, if you use them.
if you are using part or all of a wildcard exemption, in addition to a regular exemption, list both amounts.
For example, if the regular exemption for an item of furniture is $200, and you plan to exempt it to $500 using $300 from your state’s wildcard exemption, list
$200 across from the citation you listed for the regular exemption and $300 across from the citation you listed for the wildcard exemption (or across from the term
“wildcard”).
Don’t claim more than you need for any particular item. For instance, if you’re allowed household furniture up to a total amount of $2,000, don’t inflate the value of each item of furniture simply to get to $2,000. Use the values you stated on Schedule B.
Current Value of Property Without Deducting
Exemption. enter the current (replacement) value of the item you are claiming as exempt. For most items, this information is listed on schedules a and B. however, if you listed the item as part of a group in schedule B, list it separately here and assign it a separate replacement value.