Bankruptcy Exemptions in New Hampshire

Chapter 7 bankruptcy is a federal process that allows those in unmanageable debt to find relief by legal means. Some of their personal property is liquidated to pay off creditors while other types of personal property are protected by either federal or state exemptions.

In New Hampshire, the debtor has the option to choose whether federal or state exemptions will apply to their bankruptcy petition, but they must choose one or the other for all assets, not a mixture. These protections are complex, and federal exemptions may be effective for one debtor while state exemptions may be more appropriate for another. Bankruptcy attorneys understand these exemptions and may be able to provide the assistance a consumer needs to choose the suitable exemptions.

How to Keep Your Car

State and federal exemptions differ in this area:

• Federal exemption – $3,225
• New Hampshire state exemption – up to $4,000

The $4,000 exemption applies only to the value the filer carries on their vehicle, which includes the assessed worth minus any amount still owed. Indeed, if a filer owes a debt that is secured by the vehicle, while the debt may be erased, the lien may still be called for non-payment.

How to Keep Your Home

• Federal homestead exemption - $20,200
• New Hampshire state exemption – up to $100,000 for real property or manufactured homes

A mortgage is secured by a lien on the homeowner’s property. Even though the debt may be erased by bankruptcy, the lien is still valid and the creditor may foreclose if the homeowner defaults on their payments.

New Hampshire allows exemptions for other forms of personal property:

• Clothing, bedding and cooking utensils, beds, and furniture – up to $3,500
• A refrigerator, cooking stove, and heating stove, sewing machine, provisions and fuel – up to $400
• Books – up to $800
• 1 hog and 1 pig, or pork, if already slaughtered, 6 sheep and their fleece, 1 cow and hay up to 4 tons, domestic fowls – up to $300
• Church pew,
• Jewelry – up to $500
• A burial plot or lot
• Tools of the trade – up to $5,000
  • The arms, uniforms, and equipment of a member of the military
  • 1 yoke of oxen or horse needed for farming or teaming
• Any property up to $1,000
• Wild card – any property up to $7,000 in unused amounts from tools of the trade, jewelry, furniture, books, food and fuel, or a motor vehicle

Filing Schedule C of a Bankruptcy Petition

Once a petitioner has chosen whether to use federal or state exemptions, they must include a Schedule C form that details all of the property they wish to claim, as well as the details about that claim:

• The property type
• The state or federal statutes that apply
• The value of the property exemption
• The current assessed value of the property (not the market value)

Getting Legal Help

With the options of federal or state exemptions open to debtors filing Chapter 7 bankruptcy petitions, it is more crucial than in some other jurisdictions that the filer have expert advice on which exemptions are best for them, and which property to claim. Bankruptcy lawyers have the expertise to provide the guidance needed, and they can help the debtor obtain the most protection from the bankruptcy process.