Most people are worried about what will happen to their home, car or other physical asset when they are considering filing a Chapter 7 or Chapter 13 case. However, it is important to also carefully consider your intangible assets too. For example, if you have been involved in an auto accident and you have been awarded a judgment or negotiated a settlement for your medical bills, do you get to keep this money in a bankruptcy?
The Federal Bankruptcy Exemptions do not provide much protection to personal injury settlement payments. The real protection is provided to lost wages and medical expenses.
Section 522(D)(11)(D) of the Bankruptcy Code allows the exemptions of personal injury recovery up to $22,975 as of April 1, 2013, except for pain and suffering or for pecuniary loss. It may also be possible for you to claim a “wild card” exemption if you do not have equity in your home or you do not own a home. Thus, an experienced bankruptcy attorney can properly claim your settlement payment to help ensure you get to keep your money.
Most states also provide debtors with their own set of state exemptions to claim instead of the federal exemptions. The Wisconsin Bankruptcy Exemptions for personal recoveries is $50,000 and no wild card exemption is provided. Deciding whether to claim federal or state exemptions requires a thorough analysis of all of your assets. Thus, it is important to confer with a local attorney to discuss what options are best for you.
The “Milwaukee Bankruptcy Attorneys,” DeLadurantey Law Office. LLC handle Chapter 7 and Chapter 13 bankruptcies, as well as debt negotiations, debt relief, mortgage loan modifications, and foreclosure defense and debtor’s rights matters. We serve the areas of Milwaukee, South Milwaukee, West Milwaukee, Milwaukee County, and Waukesha County, including the municipalities of Big Bend Village, Brookfield City, Brookfield Town, Butler Village, Chenequa Village, Delafield City, Delafield Town, Dousman Village, Eagle Town, Eagle Village, Elm Grove Village, Genesee Town, Hartland Village, Lac La Belle Village, Lannon Village, Lisbon Town, Menomonee Falls Village, Merton, Town, Merton Village, Mukwonago Town, Mukwonago Village, Muskego City, Nashotah Village, New Berlin City, North Prairie Village, Oconomowoc City, Oconomowoc Lake Village, Oconomowoc Town, Ottawa Town, Pewaukee City, Pewaukee Village, Summit Town, Sussex Village, Vernon Town, Wales Village, Waukesha City, and Waukesha Town. Call DeLadurantey Law Office by phone at (414) 377-0518.