Posts Tagged ‘federal supplemental exemptions’

Federal Supplemental Exemptions

In most states, you can use the federal supplemental exemptions in conjunction with your state-specific exemptions. It is important u to note that these are supplemental exemptions not the complete set of federal exemptions. In those states that allow you to substitute the federal set of exemptions, you cannot use these supplemental exemptions; you can simply use the complete set of federal exemptions instead of state exemptions. Following is a list of supplemental exemptions.

Death And Disability Benefits

If you are one of those longshoremen and harbor workers or government employees who is receiving some kind of death and disability benefits from federal government, that amount of money can be exempted 100% under chapter 7 bankruptcy. Such benefits may also include war risk hazard injury or death compensation.

Survivor’s Benefits

Lighthouse workers, supreme court chief justice administrators, judicial center directors, US court directors, Judges, and those who offered military service often get survivor’s benefits. As per the laws regarding federal supplemental exemptions, the amount of money received as part of these benefits cannot be used to pay off your debts. Such benefits are 100% exempted.

Retirement Benefits

Veterans’ medal of honor benefits, Veterans’ benefits, Social Security benefits, and Military honor roll pensions come under this category. The retirement benefits that Railroad workers, Military service employees, Foreign service employees, Civil service employees, and CIA employees receive are also completely exempted.


Following are some other things that come under supplemental exemptions.

· If you have earned some wages but have not yet been paid, you can keep up to 75% of that amount. The remaining 25% can be used by the bankruptcy trustee to settle your debts. But, there can still be some exceptions. For example, low-income debtors can be allowed to keep more than 75% (if the court orders).
· Seaman’s wages, but only if there is a written agreement available confirming the employment and the wages.
· Seaman’s clothing
· Unemployment insurance received by railroad workers
· Group life insurance for those who are employed in Military service
· If you are employed outside continental US in a military service, your deposits in savings accounts cannot be used for debt repayment. You can keep 100% of that fund.
· Those Indians residing in Oregon who are receiving Klamath Indian tribe benefits can get the same exempted in full.

States Where The Above Exemptions Cannot Be Used

There are 17 states where the federal supplemental exemptions cannot be used include Arkansas, Connecticut, Hawaii, Kentucky, Massachusetts, Michigan, Minnesota, New Jersey, New Mexico, Pennsylvania, Puerto Rico, Rhode Island, Texas, Vermont, Washington DC, Washington state, and Wisconsin. In all these states, you can use either state-specified exemptions or the federal set of exemptions.

States Where The Above Exemptions Can Be Used

The remaining states have made it mandatory to use only state-specific exemptions, but the debtors (who have filed for bankruptcy under chapter 7) are allowed to use federal supplemental exemptions (as explained above) in conjunction with the state exemptions. Those states include Alabama, Alaska, Arizona, California, Colorado, Delaware, Florida, Georgia, Idaho, Illinois, Indiana, Iowa, Kansas, Louisiana, Maine, Maryland, Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, South Carolina, South Dakota, Tennessee, Utah, Virginia, West Virginia, and Wyoming.

Custom Search

Basic Things You Must Know About Bankruptcy Dismissal

When you file a petition for bankruptcy and the court rejects your petition on certain grounds, it is legally termed as bankruptcy dismissal. Dismissal means your case is officially closed and that the court will make no further rulings on your case. Some of the most common reasons why a petition is...

Credit Repair

Building Credit With No Credit

When it comes to building credit with no credit, there are several online canadian pharmacy factors that you need to take into account. Just because you do not have any credit history at present, it does not mean you will never have one. No one is born with a readymade credit history. You have to gi...

Credit Repair

A Loan To Defeat All Loans Debt Relief Loan
Payday loans fax-free payday loans and instant online payday loans are everywhere be it on the Internet newspapers or television. Today when the economy is in turmoil these loans look like the saving gra... Read more

Tips On How To Consolidate Payday Loan Debt
You may need to consolidate payday loan debt when you are caught in the middle of a financial crisis arising out of your inability to repay multiple loans. Debt consolidation loan allows you to consolidate all... Read more

Do Not Put Up With Debt Collectors Harassment
There was an emergency and the need arose to take a payday loan. It seemed to be the fastest and the best option available then. However now the debt collectors harassment is horrendous. The fact that using t... Read more

Consolidate Payday Advances To Save Yourself
Payday advances are loans taken against a persons paycheck. They have a way of digging into your paycheck month after month. They usually have exorbitant interest rates though the sites offering the services... Read more

Can I Consolidate Payday Loans
Can I consolidate payday loans is a question you are sure to ask yourself when faced with a trying financial situation. When payment of loans becomes difficult it is possible to consolidate and replace many... Read more

What are the pros and cons of debt consolidation?