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Hi, My Husband and I are contemplating

Resolved Question:

Hi,












My Husband and I are contemplating Chapter 7 bankruptcy in Michigan. We have three questions about some assets we have and whether they are exempt. We have non-qualified annuities, are they exempt? We have a boat and accompaning loan. Does the boat go into bankruptcy, because the boat loan far exceeds the value of the boat and we can afford the boat loan after bankruptcy? The third question, I have an expensive wedding band set, will I have to sell it, or can I keep it? Thank You, XXXXX XXXXX Bob
Submitted: 7 years ago.
Category: Legal
Expert:  LawHelpNow replied 7 years ago.

Hello and thanks so much for choosing this forum to pose your important legal question. I will do my best to give you some honest and accurate guidance as I answer your question.

 

  1. I am a licensed attorney, and I will be glad to try and answer your question. I hope that the following information will be helpful to you, but please just write back if you have any follow-up questions or need clarification on anything after reviewing the following information. I would be glad to interact with you further if needed after you click "Accept" to process my answer. I am sorry for your circumstances, and I hope that everything gets resolved appropriately for you and your husband in this matter.
  2. "We have non-qualified annuities, are they exempt?" Yes -- but with an important caveat. In Michigan, annuity proceeds are exempt up to an unlimited amount, but only if the annuity policy prohibits the proceeds from being used to pay creditors. If this is not the case, then unfortunately the annuities would not be exempt. A couple of other exceptions would be unlimited amount exemptions for fraternal society benefits, disability, mutual life or health insurance benefits.
  3. "We have a boat and accompaning loan. Does the boat go into bankruptcy, because the boat loan far exceeds the value of the boat and we can afford the boat loan after bankruptcy?" No -- unfortunately this item would not be exempted. Items such as a boat, recreational vehicle or vacation home are not exempt property.
  4. "The third question, I have an expensive wedding band set, will I have to sell it, or can I keep it?" No -- again unfortunately this item is most likely not exempt. There is a rather limited exemption for jewelry and heirlooms. However, this is only in an amount of up to $1,225 in value. Given the expensive nature of your wedding band set, I doubt that this would be of much relief at all, sorry to say.

 

I hope that this information has been helpful to you. If we can be of any further assistance please free to use our service again. Best wishes for a successful outcome.

 

If my answer has been helpful to you, please click "ACCEPT" so that I may be paid. This is the only way that I will receive compensation for the work performed. Please consider clicking "BONUS" as a nice way of saying "thanks" for a job well done. Clicking "FEEDBACK" to leave your positive comments is always greatly appreciated.

 

The information provided is general in nature only and should not be construed as legal advice. By using this forum, you acknowledge that no attorney-client relationship has been created between you and Benjamin M. Burt, Jr., Esq. You should always consult with a lawyer in your state.

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