Vermont Bankruptcy Exemptions

The State of Vermont has both federal and state bankruptcy exemptions available to those who file bankruptcy. The exemptions describe what property you can keep when you file for bankruptcy. Below is a list of some of the available exemption in the State of Vermont. You can obtain and more detailed list of exemptions by contacting a qualified Vermont bankruptcy attorney in your area. They will be able to list and explain all of the state and federal exemptions so that you can choose which exemptions will best fit your needs.

After filing for bankruptcy, the exempt property is safe from your creditors. Be aware that there are certain debts, which you will not be able to erase in bankruptcy. These are non-dischargeable debts.

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 is secured by a loan and payments are made on time, the exemptions will protect your equity. A debtor must generally pay the trustee the value of the non-exempt property in order to keep the property. If you choose to keep the property, continual timely payments ensure protection of the property through bankruptcy.

The best way to determine which exemptions to utilize is to meet with a qualified and proven bankruptcy attorney in Vermont which can evaluate your individual case and guide you through the process. Contact an attorney today.

Assets

Homestead: Spouse of deceased owner may claim homestead declaration, property held as tenancy by the entirety may be exempt against debts owed by only one spouse, Real property or mobile home to $75,000; may also claim rents, profits, issues and outbuildings

Pensions: Tax-exempt retirement accounts, including 401(k)s, 403(b)s, defined-benefit, profit-sharing and money-purchase plans and SEP and SIMPLE IRAs. Traditional and Roth IRAs to $1,095,000 per person, Self-directed accounts (IRAs, Roth IRAs and Keoghs); contributions must be made one year before filing, Municipal employees, State employees, Teachers, Other pensions

Insurance: Annuity contract benefits to $350 per month, Un-matured life insurance contract other than credit, Life insurance proceeds if beneficiary is not the insured, Life insurance proceeds if clause prohibits proceeds from being used to pay beneficiary’s creditors, Life insurance proceeds for person you depended on, Disability benefits that supplement life insurance or annuity contract, Disability or illness benefits needed for support, Fraternal benefit society benefits, Group life or health benefits, Health benefits up to $200 per month

Miscellaneous: Alimony and/or child support

Personal Property: Motor vehicle up to $2,500, Jewelry to $500, Wedding ring, unlimited, Health aids, Stove, refrigerator, freezer, water heater, heating unit and sewing machine, appliances, furnishings, goods, clothing, books, crops, animals and musical instruments up to $2,500 total, Bank deposits up to $700, Cow, 2 goats, 10 sheep, 10 chickens and feed to last one winter; 3 swarms of bees, plus honey; 5 tons coal or 500 gallons heating oil, 10 cords of firewood; 500 gallons of bottled gas, Growing crops up to $5,000, Yoke of oxen or steers and plow, 2 horses with harnesses, halters and chains, Personal injury, lost future earnings and/or wrongful death recoveries for you or person you depended on

Tools of Trade: Books and tools of trade up to $5,000

Public Benefits: Workers’ compensation, Unemployment compensation, Social Security needed for support, Veterans’ benefits needed for support, Crime victims’ compensation, Aid to blind, aged and/or disabled, General assistance

Wages: Minimum 75% of weekly disposable earnings or 30 times the federal minimum, hourly wage, whichever is greater; bankruptcy judge may authorize more for low-income debtors

Wildcard: $400 of any property, Unused exemptions for motor vehicle, tools of trade, jewelry, household furniture, appliances, clothing and crops up to $7,000

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