Exemptions

Question 1

Exempt property is property that…

Answer 1

may not be attached by creditors, neither before a judgment nor after a judgment.

Question 2

A debtor’s legal claim against a third party is a form of personal property that _____ be attached by a creditor.

Answer 2

can

Question 3

What’s the exception to rule for a debtor’s legal claim against a third party?

Answer 3

Personal injury claims.

Question 4

What is the rationale for exemption of personal injury claims?

Answer 4

Your body cannot be used to satisfy your creditors; so legal claims that result from damage to your body also cannot be taken by your creditors.

Question 5

What is the exception to the exemption of personal injury claims?

Answer 5

The debt is for medical expenses related to the injury.

Question 6

This type of tenancy is exempt.

Answer 6

Tenancy by the entirety

Question 7

Tenancy by the entirety is not property of…

Answer 7

Husband and wife separately, but husband-wife as one person.

Question 8

Tenancy by the entirety exemption exceptions

Answer 8

1. IRS can enforce a tax lien against a tenancy by the entirety.
2. A creditor who is owed a debt by husband-wife may attach a tenancy by the entirety (e.g. if husband-wife co-sign a mortgage)

Question 9

A homestead exemption is…

Answer 9

not the actual exemption of one’s real property, but the right to declare any property up to a certain value as exempt.

Question 10

The homestead exemption consists of:

Answer 10

1. $5,000 plus $500 per dependent.
2. People over 65 get $10,000.

Question 11

The homestead exemption is claimed by filing…

Answer 11

a “homestead deed” with the clerk of county where the real property is located.

Question 12

You ___ file a homestead deed after a judgment lien attaches.

Answer 12

can

Question 13

The homestead exemption cannot be used against:

Answer 13

1. Purchase money security interest
2. Spousal or child support obligations
3. Intentional tort claims
4. When waived vis-a-vis the creditor in question
5. Against the IRS

Question 14

A list of exempt property that everyone gets.

Answer 14

Poor debtor’s exemption

Question 15

What does the Poor Debtor’s Exemption consist of?

Answer 15

1. Clothes up to $1,000
2. Furnishings up to $5,000
3. Tools of the Trade up to $10,000
4. Car up to $6,000
5. Heirlooms up to $5,000 (heirlooms are not defined in the statute)
6. Family bible, wedding and engagement rights, and pets.
7. Burial lot up to $5,000

Question 16

Wages are exempt, but only for the lesser of:

Answer 16

1. 25% of wages, or
2. Excess of 40 times the federal hourly minimum wage.