Bankruptcy Law

Bankruptcy law questions? Ask a bankruptcy lawyer.

Ask a Lawyer,
Get an Answer ASAP!

My parents filed chapter 7 bankruptcy. They received a

Customer Question
letter back from the attorney...
My parents filed chapter 7 bankruptcy. They received a letter back from the attorney they hired and the letter stated, "they are over the limit on the allowable exemptions for a chapter 7".What does this mean? Their both on SS retirement and my mom has a small pension
Submitted: 8 months ago.Category: Bankruptcy Law
Show More
Show Less
Ask Your Own Bankruptcy Law Question
Answered in 6 minutes by:
9/5/2017
Bankruptcy Lawyer: Ray, Lawyer replied 8 months ago
Ray
Ray, Lawyer
Category: Bankruptcy Law
Satisfied Customers: 47,135
Experience: 30 years in civil, probate, real estate, elder law
Verified

Hi and welcome to JA. Ray here to help you today.Please bear with me a few moments while I review your question and respond.

Ask Your Own Bankruptcy Law Question
Bankruptcy Lawyer: Ray, Lawyer replied 8 months ago

West Virginia Bankruptcy Exemptions

Unless otherwise noted, all law references are to the West Virginia Code.

Homestead

38-10-4 - Real or personal property used as a residence up to $25,000. Unused portion may be applied to any other property. (Amount increased to $250,000 for doctors with a medical malpractice judgment as long as liability insurance existed at the time of the incident.)

Personal Property

38-10-4 - Motor vehicle up to $2,400; clothing, household goods, furnishings, appliances, books, musical instruments, animals and crops up to $400 per item and $8,000 total; jewelry up to $1,000; health aids; lost earnings payments needed for support; personal injury recoveries up to $15,000 (pain and suffering and pecuniary awards excluded); prepaid higher education trust fund and savings plan payments; and wrongful death recoveries for a person you depended upon for support.

38-10-4 - Burial plot up to $25,000, (must be used instead of the homestead exemption).

Wages

38-5A-3 - Minimum of 30 times the federal hourly minimum wage per week. Judge may approve more for low-income debtor.

Pensions

11 U.S.C. § 522 - Tax exempt retirement accounts (including 401(k)s, 403(b)s, profit-sharing and money purchase plans, SEP and SIMPLE IRAs, and defined benefit plans).

11 U.S.C. § 522(b)(3)(C)(n) - IRAS and Roth IRAs to $1,283,025.

5-10-46 - Public employees.

18-7A-30 - Teachers.

38-10-4 - ERISA-qualified benefits and IRAs needed for support.

Public Benefits

38-10-4 - Crime victims' compensation; unemployment compensation; public assistance; Social Security; disability; and Veterans' benefits.

Tools of Trade

38-10-4 - Tools, books and implements of trade up to $1,500.

Alimony and Child Support

38-10-4 - Alimony and child support needed for support.

Insurance

33-6-28 - Group life insurance policy and proceeds.

38-10-4 - Unmatured life insurance contract (except for credit life insurance contract); life insurance dividends, interest, loan, cash, or surrender value for person you depended; and unmatured life insurance contracts' accrued loan value, interest, or dividend up to $8,000 as long as the debtor owns the contract and the insured is either the debtor or a person the debtor is dependant upon.

Wildcard

38-10-4(e) - $800 plus unused portion of homestead or burial exemption, of any property.

Other

Add any applicable Federal Nonbankruptcy Exemptions.

Anything over these items are amounts can be taken by the trustee.

I appreciate the chance to help you today.Thanks again.

If you can positive rate 5 stars it is much appreciated.

Ask Your Own Bankruptcy Law Question
Customer reply replied 8 months ago
Ok, so a 7 you wipe debt clear, what is a 13?
Bankruptcy Lawyer: Ray, Lawyer replied 8 months ago

Thats a payment plan type bankruptcy, exemptions are the same here for Chapter 7 or 13. It could be money, an extra car, should ask t he lawyer where they are over to see what trustee will take.Also its possible they are saying their income is too high, there is a means test and they have to file Chapter 13.Chapter 13 is a long term payment plan of multiple years of austere living where you pay your wages into plan, they spend it and you get a frugal amount of money to live on.

Ask Your Own Bankruptcy Law Question
Bankruptcy Lawyer: Ray, Lawyer replied 8 months ago

When you file for bankruptcy in West Virginia, you must compare your income to the median income for a household of your size in West Virginia. If you income is less than the median, you will be eligible to file for Chapter 7 and, if you choose to file for Chapter 13 instead, you can use a three-year repayment plan (rather than five years).

If your income is above West Virginia’s median income for a household of your size, you still might qualify for Chapter 7, but you will have to provide detailed information on your regular expenses and payments on secured debts by completing something called the means test to find out. Most Chapter 13 filers will also have to provide this information in a similar Chapter 13 form.

For information about each of these forms, including how to complete them, see:

  • Form 22A–Statement of Current Monthly Income and Means Test Calculation (for Chapter 7), and
  • Form 22C –Statement of Current Monthly Income and Calculation of Commitment Period and Disposable Income (for Chapter 13).

Related Ads

Here’s how to find West Virginia-specific figures for these forms:

West Virginia Median Income. For a one person household in West Virginia, the median income is $40,887. For a family of four, the West Virginia median income is $61,691. You can find median income figures for other household sizes in West Virginia here.

Example. Jeremy is married and has two children. He lives with his wife and his two children. Their total household income is $58,500. He is eligible to file for Chapter 7 without completing the detailed means test calculations because his household income is less than $62,691.

Standard deductions. Forms 22A and 22C have a comprehensive list of expense categories, such as housing, transportation, food and childcare. For some of those categories (like childcare), you provide the actual amount you spend. For other categories, you plug in a predetermined amount–sometimes that figure is standard for the entire country, other times it varies by county or region.

You can find all of the West Virginia area state, county and region-specific figures that you will need to complete Forms 22A and Forms 22C on the U.S. Trustee’s website at www.justice.gov/ust. Click on "Bankruptcy Reform" and then "Means Testing Information."

Example. In West Virginia, the standard amount that you list on your means test for housing varies by county and number in your household. If you live in Raleigh County, your mortgage or rent deduction is $517 for a one-person household and $714 for a four-person household. If you live in Monongalia County, your mortgage or rent deduction is $705 for a one-person household and $973 for a four-person household. You can find housing expense standards for each West Virginia county here.

Ask Your Own Bankruptcy Law Question
Was this answer helpful?
Ask Ray Your Own Question
Ray
Ray
Ray, Lawyer
Category: Bankruptcy Law
Satisfied Customers: 47,135
47,135 Satisfied Customers
Experience: 30 years in civil, probate, real estate, elder law

Ray is online now

A new question is answered every 9 seconds

How JustAnswer works:

  • Ask an ExpertExperts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional AnswerVia email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction GuaranteeRate the answer you receive.

JustAnswer in the News:

Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.

What Customers are Saying:

Mr. Kaplun clearly had an exceptional understanding of the issue and was able to explain it concisely. I would recommend JustAnswer to anyone. Great service that lives up to its promises!

Gary B.Edmond, OK

My Expert was fast and seemed to have the answer to my taser question at the tips of her fingers. Communication was excellent. I left feeling confident in her answer.

EricRedwood City, CA

I am very pleased with JustAnswer as a place to go for divorce or criminal law knowledge and insight.

MichaelWichita, KS

PaulMJD helped me with questions I had regarding an urgent legal matter. His answers were excellent.

Three H.Houston, TX

Anne was extremely helpful. Her information put me in the right direction for action that kept me legal, possible saving me a ton of money in the future. Thank you again, Anne!!

ElaineAtlanta, GA

It worked great. I had the facts and I presented them to my ex-landlord and she folded and returned my deposit. The 50 bucks I spent with you solved my problem.

TonyApopka, FL

Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help.

Mary C.Freshfield, Liverpool, UK

< Previous | Next >

Meet the Experts:

Terry L.

Terry L.

Attorney

2,679 satisfied customers

Better Business Bureau. 18yrs bankruptcy experience. Chicago Bar Assoc. American Bankruptcy Institute member.

cortrightlaw

cortrightlaw

Attorney

511 satisfied customers

Attorney practicing Bankruptcy Law including Chapter 7, Chapter 11, Chapter 12, and Chapter 13.

JoeLawyer

JoeLawyer

Attorney

376 satisfied customers

Attorney in the practice of Bankruptcy Law since 1996

A.J.

A.J.

Attorney

262 satisfied customers

Experienced consumer bankruptcy attorney.

Fritz

Fritz

Attorney

209 satisfied customers

Florida attorney with extensive experience in Chapter 7 and Chapter 13 consumer bankruptcy cases

Law Girl

Law Girl

Attorney

153 satisfied customers

I am an attorney.

Paul K, Esq.

Paul K, Esq.

Attorney

141 satisfied customers

10 years Exp., Great customer service, Prompt responses.

< Previous | Next >

Related Bankruptcy Law Questions
I received a chapter 7 discharge in a no asset case. I
I received a chapter 7 discharge in a no asset case. I didn't include a Bank of America account that I recently saw on my chexsystems report. Does that mean it won't be discharged. FYI I live in Ohio… read more
KUMI95
KUMI95
Attorney
Doctoral Degree
17 satisfied customers
BANKRUPTCY: Debtor filed Chapter 7 bankruptcy and included
BANKRUPTCY: Debtor filed Chapter 7 bankruptcy and included Garnished wages as their assets in SCH A/B, and claimed as exempt in SCH C. The funds were garnished within 3 months of filing.Is there a for… read more
Terry L.
Terry L.
Attorney
Doctoral Degree
2,679 satisfied customers
I converted chapter 13 bankruptcy to chapter 7. will the
I converted chapter 13 bankruptcy to chapter 7. will the bankruptcy stay on my credit report for ANOTHER 10 years? … read more
Mark Anderson
Mark Anderson
Attorney
Doctoral Degree
10 satisfied customers
I filed chapter 7 the day before my home was to be sold in
i filed chapter 7 the day before my home was to be sold in foreclosure on the court steps to stop that from happening. Now if the trustee says i have no equity in my home and abandons it and discharge… read more
Phillips Esq.
Phillips Esq.
Attorney
JD
19,591 satisfied customers
If I file for chapter 7 or 13 can the courts take/garnish my
if I file for chapter 7 or 13 can the courts take/garnish my state retirement pension. its all I will have to live off after this ??????? … read more
Terry L.
Terry L.
Attorney
Doctoral Degree
2,679 satisfied customers
I may have to file chapter 7 bankruptcy. My debt is
I may have to file chapter 7 bankruptcy. My debt is primarily non consumer debt.[87%]. I was reading US Code 547 c 9 and was also told that since it a non consumer debts chapter 7 that i could transfe… read more
Mark Anderson
Mark Anderson
Attorney
Doctoral Degree
10 satisfied customers
In form Form 106A/ for Chapter 7. In any of the sections
In form Form 106A/B for Chapter 7.In any of the sections when they ask you : 1.) Current value of the entire property? 2.) Current value of the portion you own?What do I put for part 2?Example : Singl… read more
Mark Anderson
Mark Anderson
Attorney
Doctoral Degree
10 satisfied customers
I may have to file chapter 7 at some point in future. Both
HelloI may have to file chapter 7 at some point in future. Both my daughter and my son saved and I helped them buy vehicles. They paid for them. They are older used cars worth 2500 and 3500. Can I tra… read more
Alex Esquire
Alex Esquire
Managing Attorney
Doctoral Degree
153 satisfied customers
Ch 7 Means test for a family of 4 in PA.What is the monthly
Second opinion] Ch 7 Means test for a family of 4 in PA.What is the monthly limit and the Total Limit for the year?… read more
Phillips Esq.
Phillips Esq.
Attorney
JD
19,591 satisfied customers
Ch 7 Means test for a family of 4 in PA. What is the monthly
Ch 7 Means test for a family of 4 in PA.What is the monthly limit and the Total Limit for the year?… read more
Mark Anderson
Mark Anderson
Attorney
Doctoral Degree
10 satisfied customers
In a chapter 7 bankruptcy if there is both a discharged tax
In a chapter 7 bankruptcy if there is both a discharged tax liability and a current tax liability and assets that the trustee will sell. Which tax liability will the proceeds from the sale go to first… read more
Terry L.
Terry L.
Attorney
Doctoral Degree
2,679 satisfied customers
Another question? If a person filed chapter 7 bankruptcy and
Ok another question?If a person filed chapter 7 bankruptcy and remAins paying on vehicle through discharge on bankruptcy, if at some point I stop paying will they repo the vehicle. I know it's not on … read more
Ray
Ray
Lawyer
47,135 satisfied customers
This is a chapter 7 question...the Debtor currently has a
This is a chapter 7 question...the Debtor currently has a garnishment that will be extinguished by the chapter 7 discharge...Does that garnishment still go on Schedule I? How would it be treated on th… read more
Terry L.
Terry L.
Attorney
Doctoral Degree
2,679 satisfied customers
I hired an attorney in IL to file a Chapter 7 for me. Most
I hired an attorney in IL to file a Chapter 7 for me. Most of my LLC's are based in GA. I had since moved to IL for six months so filed in that state. I had a couple items that were sold and the credi… read more
Phillips Esq.
Phillips Esq.
Attorney
JD
19,591 satisfied customers
I bought trustee deeds from a Chapter 7 bankruptcy trustee
I bought trustee deeds from a Chapter 7 bankruptcy trustee years ago, and the title of the properties are lised***** Anywhere, USA 12345 subject to the existing claims and creditors either known or un… read more
Damien Bosco
Damien Bosco
Attorney
Doctoral Degree
4,519 satisfied customers
My wife filed for chapter 7 recently she forgot to include
My wife filed for chapter 7 recently she forgot to include my income in the means test, and now that we add it it she does not pass … read more
Ray
Ray
Lawyer
47,135 satisfied customers
Who owns the home Title after Chapter 7 Discharged ?. Pls
who owns the home Title after Chapter 7 Discharged ?. Pls check the Case Number: 17-16948- New jersey case . Maura Ojeda. I need to find if she got CH7-Discharged does she have any rights to stay in t… read more
Barrister
Barrister
Attorney/Landlord/Realtor
Doctoral Degree
37,102 satisfied customers
If a husband files Chapter 7 bankruptcy, can the husband
If a husband files Chapter 7 bankruptcy, can the husband borrow money from the wife, after the 341 hearing but before the chapter 7 is discharged? … read more
Phillips Esq.
Phillips Esq.
Attorney
JD
19,591 satisfied customers

DISCLAIMER: Answers from Experts on JustAnswer are not substitutes for the advice of an attorney. JustAnswer is a public forum and questions and responses are not private or confidential or protected by the attorney-client privilege. The Expert above is not your attorney, and the response above is not legal advice. You should not read this response to propose specific action or address specific circumstances, but only to give you a sense of general principles of law that might affect the situation you describe. Application of these general principles to particular circumstances must be done by a lawyer who has spoken with you in confidence, learned all relevant information, and explored various options. Before acting on these general principles, you should hire a lawyer licensed to practice law in the jurisdiction to which your question pertains.

The responses above are from individual Experts, not JustAnswer. The site and services are provided “as is”. To view the verified credential of an Expert, click on the “Verified” symbol in the Expert’s profile. This site is not for emergency questions which should be directed immediately by telephone or in-person to qualified professionals. Please carefully read the Terms of Service (last updated February 8, 2012).

DISCLAIMER: Answers from Experts on JustAnswer are not substitutes for the advice of an attorney. JustAnswer is a public forum and questions and responses are not private or confidential or protected by the attorney-client privilege. The Expert above is not your attorney, and the response above is not legal advice. You should not read this response to propose specific action or address specific circumstances, but only to give you a sense of general principles of law that might affect the situation you describe. Application of these general principles to particular circumstances must be done by a lawyer who has spoken with you in confidence, learned all relevant information, and explored various options. Before acting on these general principles, you should hire a lawyer licensed to practice law in the jurisdiction to which your question pertains.

The responses above are from individual Experts, not JustAnswer. The site and services are provided “as is”. To view the verified credential of an Expert, click on the “Verified” symbol in the Expert’s profile. This site is not for emergency questions which should be directed immediately by telephone or in-person to qualified professionals. Please carefully read the Terms of Service (last updated February 8, 2012).

Show MoreShow Less

Ask Your Question

x