Alaska Bankruptcy Laws
For those choosing to file Chapter 7 bankruptcy, there are some statutes protecting essential property and a portion of their assets from liquidation. These exemptions can be found under both federal and state laws; however, Alaska allows only state exemptions.
Alaska’s key exemptions include:
Homestead
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$54,000 |
Personal Property |
Up to $3,000 total, including household goods, clothing, etc. |
Wages |
Weekly net income up to $350 (sole wage earner, $550), up to $1,400 ($2,800) in any given month for those without a regular wage |
Pensions |
Elected public officials, judicial employees, public employees, teachers, and others to the extent wages exempt |
Public Benefits |
Elderly, blind, or disabled; AFCD; crime victims’ compensation; federally exempt public benefits; general relief assistance; 45% of permanent fund dividends; tuition credits; unemployment; worker’s comp |
Tools of Trade |
Up to $2,800 of books, tools, and implements |
Insurance |
Disability; fraternal benefits; personal injury; wrongful death; life insurance or annuity up to $10,000; medical, surgical or hospital |
Once a consumer and their bankruptcy lawyer determine which type of bankruptcy to file, they must complete the credit counseling requirement, process the paperwork and proceed through the bankruptcy process, including:
- Outlining their financial situation, including income, disposable income, and debts
- Filing and receiving an automatic stay on all debt collections
- Working with the bankruptcy trustee to plan discharge or repayment of debts
- Attending a required 341 meeting with creditors to outline the plan and answer any questions
Once completed, the process leaves the debtor free to begin again, debt-free.
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