When you file a personal bankruptcy, you are required to disclose all of your assets. If you own firearms, you will be required to include them on your list of assets. It is important to discuss your guns with your attorney and whether your firearms are a tool of the trade, used to defend yourself, as a hobby, or as an investment.
Bankruptcy law provides a variety of exemptions for certain assets, which means that they will not be included in your filing. Your firearms are typically protected by exemptions that allow you to keep possession of your guns. You should confer with local counsel to understand how your jurisdiction’s laws apply in your case.
Below Are the Federal Exemptions That Are Applicable to Firearms:
- The federal “catch-all” exemption can be applied to any personal assets in an amount up to $1,150.00. 11 U.S.C. § 522(d)(5).
- Any home equity that has not been used (not already exempted by 11 U.S.C. § 522(d)(1)) can be applied in an amount up to $10,825.00. 11 U.S.C. § 522(d)(5)
- Tools and equipment that are used in your business can be exempted in an amount up to $2,175.00. To apply this exemption, you are required to prove that the firearms are required for your trade, employment or business. 11 U.S.C. § 522(d)(6)
We understand your firearms are important to you. Let us examine your individual circumstances and help you understand all of your options for exempting them from your bankruptcy case.
If you are considering filing a bankruptcy and you need help determining which type of filing would be best for you, contact Fitzgerald Campbell to schedule an appointment. We do not offer just one debt relief option, we don’t push you in one direction. If bankruptcy right for you, we will tell you. If it’s not, we will tell you that. If bankruptcy is your get out of debt plan, it needs to be done right. It needs to be in the hands of experienced lawyers who have been there before. Contact us today!