Alaksa Bankruptcy Exemptions

The State of Alaska does not have federal bankruptcy exemptions like some states.

For couples filing for bankruptcy protection, each person can claim a full set of exemptions unless otherwise noted.

There are some limits on certain exemptions such as equity that you have in a home or in a vehicle. The difference between the cost of the item and the amount owed on the item is the definition of equity. If the item, such as home or vehicle, is secured by a loan and payments are made on time, the equity is protected by your exemptions. If you choose to keep the property, continual timely payments ensure that the property is protected through the bankruptcy.

There are certain possessions that can be exempt or protected from creditors when filing for bankruptcy in Alaska. While there are some debts that cannot be wiped away in bankruptcy, there is property that can be kept.

Assets

Homestead: Total cannot exceed $67,500 (joint owners may each claim a portion)

Insurance: All medical, surgical, or hospital benefits.Total avails to $12,500 on life insurance or annuity contracts. Fraternal benefit society benefits. Disability benefits.

Miscellaneous: Alimony, to extent wages exempt. Child support payments made by collection agencies. Liquor license and property of business partnerships.

Pensions: Tax exempt retirement accounts, including 401(k)s, 403(b)s, Profit sharing and money purchase plans, SEP and SIMPLE IRAs, Defined-benefit plans, Traditional and Roth IRAs up to $1,000,000 per person, Teacher’s pensions (only benefits building up), Elected public officials, judicial employees and public employees (only benefits building up), ERISA-qualified benefits deposited more than 120 days before filing, Medical savings accounts.

Personal Property: Pets up to $1,250, Jewelry up to $1,250, Health aids needed, Books, musical instruments, family portraits, heirlooms, clothing and household goods to $3,750 total, All building materials, Burial plot, Any deposit in condominiums or apartment owner’s association, Personal injury recoveries, to extent wages exempt, Proceeds for lost, damaged or destroyed exempt property, Wrongful death recoveries, to extent wages exempt, Tuition credits under an advance college tuition payment contract, Motor vehicle to $3,750 and the vehicle’s market value cannot exceed $25,000, Cash or other liquid assets to $1,750 for single wage owner homes.

Public Benefits: Worker’s compensation and unemployment compensation, Crime victim’s assistance, Alaska longevity bonus General relief assistance, Senior care benefits covering prescriptions, Adult assistance to elderly, blind and disabled, Federally exempt public benefits paid or due, General relief assistance, Twenty percent of permanent fund dividends.

Tools of Trade: Books, tools and implements of trade up to $3,500

Wages: For sole wage earner in household, weekly net earnings to $688, For two wage earner’s in household $438 weekly per person, Monthly- $1,750 in cash or liquid assets paid, Sole wage earner in household $2,750 per month.

Wild Card: None

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