Objection to Exemptions
An objection to an exemption may occur if a party of interest, trustee or creditor, objects to the bankruptcy exemption.
Objection to Exemptions
Debtors are able, under Bankruptcy Code Section 522, to claim certain exemptions and maintain designated assets which a creditor can not seize or which can not be liquidated by a trustee. An objection to an exemption may occur if a party of interest (trustee or creditor) objects to the bankruptcy exemption. All bankruptcy exemption objections must be made within 30 days from the date of the creditors' meeting. If creditors fail to make an objection to the exemption within the specified time period the objection is rejected and the property or asset is considered fully exempt. Most creditor objections to exemptions are made because they believe the debtor has assessed a value to the asset which is too low.
A trustee can also make objections to bankruptcy exemptions which are improperly claimed. The trustee must analyze the list of property which the debtor has claimed as exempt and determine if the method the debtor used to assess the property value is valid. Like creditors, the trustee must make their objections to the bankruptcy exemptions within 30 days from the date of the first creditors' meeting. All objections to exemptions must be filed with the bankruptcy court. The debtor is given a chance to respond to all objections and the bankruptcy court will also analyze and make a determination about the exemptions at a bankruptcy hearing. Talk to a bankruptcy attorney who is familiar with your state's laws to determine exempt property values. Federal exemptions allowed vary with inflationary changes and bankruptcy laws can also periodically change.
More Help on Objection to Exemptions
- Bankruptcy Code - The United States constitution outlined in Article I, Section 8, gave the right of Congress to establish \"uniform laws on the subject of bankruptcies.\" - read more
- Creditor - Creditors can include businesses, individuals, organizations or the United State\'s government who is owed money for services or products provided to a second party in return for payment. - read more
- Trustee - The bankruptcy trustee program, created by the United States Department of Justice, manages and oversees the bankruptcy process to improve efficiency and guarantee the integrity of the bankruptcy system. - read more