When you file a bankruptcy case, you are required to disclose all of your assets. Guns are considered an asset. A firearm may be a tool of your trade, an investment, used for personal protection or as a hobby. Thus, when you schedule your guns in your bankruptcy filing, it is important to understand how they will be treated in your case. There are several exemptions which a debtor can claim to remove the guns from the bankruptcy and allow the debtor to keep them. Below are the applicable federal exemptions: 11 U.S.C. § 522(d)(5): $1,150.00, which is the federal catch-all exemption and may be applied to any personal property owned by the debtor; 11 U.S.C. § 522(d)(5): Up to $10,825.00 of unused home equity not already exempted under 11 U.S.C. § 522(d)(1); 11 U.S.C. § 522(d)(6): $2,175.00 for tools and equipment used in business. For this exemption to be applicable, the debtor must establish that the firearms are necessary for the debtor’s trade, employment or business. New Jersey does not offer an exemption for tools of the trade and there is no “wild card” exemption. Thus, many New Jersey debtors opt to use the applicable federal exemptions to protect their firearms. If you own firearms and you are considering filing for bankruptcy protection, contact Levitt & Slafkes for help. We are bankruptcy lawyers who know how to make a difference in your financial situation. We have experience you can rely on and we care about your results. Contact our New Jersey law firm online by filling out the form or by calling 973-323-2953 to schedule a free initial consultation with an attorney at Levitt & Slafkes, P.C..
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