What happens to my corporate bond after bankruptcy in Washington?
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Most people use the 11 U.S.C. § 522(d)(5) exemption to cover their corporate bond in Washington Chapter 7 bankruptcy cases.
Washington allows the use of federal exemptions. You will have to check whether the state of federal exemption scheme is better for your assets and case. Many people in Washington who don’t own real estate choose the federal exemptions.
Under that scheme, most people use 11 U.S.C. § 522(d)(5) to exempt corporate bond in Washington bankruptcy cases.
11 U.S.C. § 522(d)(5) is a wildcard exemption, meaning it can be used to cover a wide range of assets. For single debtors filing, it has a coverage limit of $13,900. If your assets go over this limit, they may be able to be seized by a trustee.
Here is a list of some statutes available in Washington that are available for filers.
It is worth taking your time on these exemptions. If you do not cover an asset with an exemption in a Washington bankruptcy case, it may be seized by a trustee. If you do not feel comfortable with these decisions and want assistance, read more about exemptions or consider using our free bankruptcy help.
What are federal exemptions?
Every state has its own set of property exemptions. And some states also allow you choose between their exemptions and a set of federal bankruptcy exemptions. Although some states allow you to use the federal bankruptcy exemptions, others do not.
When filing Chapter 7 or Chapter 13 bankruptcy you must report your assets. Exemptions are the laws that allow you to protect those assets from being taken by a Trustee. Take your time with this so you avoid losing property.