§3014 Exempt Property

Summary

Lets a person who owes money pick which rules protect their property in a federal action. They can choose either property listed in section 522(d) of Title 11 (as it may be changed) or property that is exempt under other federal law or the state or local law that applied where they lived for the 180 days before filing (or for the longest part of those 180 days). If both spouses are debtors, they must pick the same option. If they disagree, the choice defaults to the 522(d) option. The rule also covers interests like tenancy by the entirety, joint tenancy, or community property to the extent those get protection under nonbankruptcy law. A court can require the debtor to file a sworn statement describing each claimed exemption, its value, and the ownership, and must give a copy to the U.S. government’s lawyer. The United States or the debtor can ask for a hearing and the court will decide how much of the exemption applies. Unless the exemption is obviously valid, the debtor must prove it. Claiming an exemption stops the United States from selling or taking the property until the court decides whether the debtor has a substantial nonexempt interest. These rules apply separately to each debtor in a joint case, except for the rule about choosing options.