District of Columbia Bankruptcy Laws
In the District of Columbia, the federal exemptions or the District’s own exemption list may be chosen when granted Chapter 7 bankruptcy. The exemptions according to D.C. regulation include:
Homestead |
Unlimited |
Wages |
Up to 75% earned but unpaid, $200/month for unemployed head of household or $60/month for any unemployed person for only two months total |
Personal Property |
Motor vehicle to $2,575, household items $425/item to $8,625 total, provisions for 3 months, higher education savings account |
Pensions |
Tax exempt retirement accounts, Roth IRAs to $1,095,000 per person, ERSIA-qualified, public school teacher’s |
Public Benefits |
Crime victims, worker’s compensation, unemployment, veterans, general public assistance, social security |
Tools of the Trade |
Notary public seals and documents, implements of trade to $1,625, professional or artistic implements to $300 |
Insurance |
Life (matured or not, no credit life insurance), group life, other to $200/month for head of household or $60/month anyone else (for only two months) |
Miscellaneous |
Burial provisions, health aids, child support and alimony, anything to $850 and any unused homestead value |
The relief of Chapter 7 bankruptcy is not available to everyone, and before filing a petition to the bankruptcy court, one must first pass the “means test” to determine their eligibility. After this, inventory of the debtor’s possessions must be taken. This should be done with utmost caution in order to avoid any possibility of bankruptcy fraud. Petitions are generally answered within 20 to 40 days, and if successful, creditors will be contacted immediately to arrange the “341 meeting.” This meeting is between the creditors and the debtor through a bankruptcy trustee, where for Chapter 13 cases the most vital step occurs of designing the repayment plan.
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