Firearms can be an investment, a collector’s item, a tool for your job or hobby, or a method of self protection. They typically hold their value and do not depreciate significantly. When you file a bankruptcy case, it is important to understand how they will be treated in your filing.
Guns are an asset of your bankruptcy estate. You must make full disclosure to the bankruptcy court when you file your case. State and federal law provide numerous exemptions for a debtor to claim which will protect your firearm from the bankruptcy process and allow you to keep it. Of course, every state law is different if the exemptions allowed, but below are the 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 to the debtor, the debtor must establish that the firearms are necessary for the debtor’s trade, employment or business.
Many debtors do not think to list their firearms as an asset, but it is important that you disclose them to the court and claim the proper exemptions. Thus, when you meet with your bankruptcy attorney, be sure to advise him/her that you own firearms.
If you are considering filing a bankruptcy case and you are curious how your firearms will be treated in your filing, be sure to contact Dan Dodds to learn more.
If you would like a down-to-earth approach and a lawyer who will listen carefully to all your questions and concern, call The Dodds Law Firm, PLC at 623-209-8923. Dan Dodds serves clients primarily in the areas of Chapter 7 and Chapter 13 bankruptcies, real estate issues, violations of the Fair Debt Collection Practices Act, and issues of Unfair or Deceptive Business Practices. Mr. Dodds and his staffknow how to listen carefully, and how to explain the law and procedures involved in a legal matter, as well as your rights and options, so that you can make informed choices. If you live in the area of Surprise, Arizona, call The Dodds Law Firm, PLC.