§3014 Exempt Property

Summary

A person who owes money in a case under this chapter can choose to protect certain property from being taken. They can pick one of two options: either the kinds of property listed in 11 U.S.C. 522(d), or property that is exempt under other federal law or the state or local law where they lived for the 180 days before filing (or the place where they lived the longest during that 180-day period). Married couples filing together cannot pick different options; if they disagree, the first option (the 522(d) list) is treated as chosen. The rule also covers certain joint or spouse-owned property if local law says it is protected from seizure. A court can require the debtor to file a sworn statement describing each claimed exemption, its value, and how the debtor owns it, and must give a copy to the U.S. government’s lawyer. The U.S. or the debtor can ask for a hearing, and the court will decide how much of the claim is allowed. The person claiming an exemption normally must prove it unless it is clearly valid. Claiming an exemption stops the government from selling or taking the property until the court decides if the debtor has a substantial nonexempt interest. The rules apply to each person in a joint case, subject to the married-couple limit above.