Can I Keep My Firearms if I File Bankruptcy?

by DeLadurantey Law Office, LLC on January 27, 2014

Can I Keep My Firearms if I File Bankruptcy?If you are considering filing for bankruptcy and you own guns, it is important to discuss this matter with your attorney and let him know if they are a tool of your trade, an investment, used for protection or a hobby. Your firearms are considered an asset and they should be included in your list of assets filed with the bankruptcy court.

While the law requires debtors to disclose all of their assets, the law also provides numerous exemptions (both state and federal) you can claim to remove your firearms from you bankruptcy. These exemptions were created to allow you to keep possession of your assets, including your guns. It is important to understand that every state offers different exemptions, so it is essential to confer with a local attorney to discuss how they apply to you.

The federal exemptions that are applicable to firearms include:

11 U.S.C. § 522(d)(5) is the federal “catch-all” exemption in the amount of $1,150.00, which may be applied to any personal property owned by the debtor.

11 U.S.C. § 522(d)(5) allows you to apply up to $10,825.00 of unused home equity not already exempted under 11 U.S.C. § 522(d)(1).

11 U.S.C. § 522(d)(6) provides an exemption of $2,175.00 for tools and equipment used in business. For this exemption to be applicable, you must establish that the firearms are necessary for your trade, employment or business.

It is important to understand how your firearms will be treated in your bankruptcy filing. Schedule your initial consultation with the attorneys at DeLadurantey Law Office, LLC to discuss your filing.

At DeLadurantey Law Office, LLC, we help businesses and families find their way out of highly difficult financial situations. We provide the advice and guidance you need in obtaining debt relief through bankruptcy and debt negotiations. We can also assist you in defending a foreclosure action.  Contact us at 414-377-0518 to discuss how our Milwaukee bankruptcy attorneys can assist you. Like us on Facebook!

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