,MODULE27 BANKRUPTCY 239

1] Small amount of money

2] Residence
3] Clothing
4] Tools of trade
5] Insurance
(b) Examples -of exemptions under federal nonbankruptcy law
, '
1] Veteran's benefits
2] Social security benefits
3] Unemployment compensation or benefits
4] Disability benefits

5] Alimony
(2) Or, exemptions provided by federal Bankruptcy Code
(a) Allowable federal exemptions include
1] $20,200 equity in principal residence including co-op or mobile home
2] $3,225 equity in one motor vehicle

3] $2,025 in books and tools of one's trade

4] $525 per item qualifying for personal, family, or home use (has an aggregate ceiling
of $10,775)
5] $1,350 injewelry I

6] Life insurance with accrued dividends and interest to $10,775

7] Unmatured life insurance contracts

8] Social security benefits

9] Unemployment compensation
10] Disability, illness, or unemployment benefits
11] Alimony and child support
12] Veteran's benefits
13] Prescribed health aids
14] Public assistance
15] Pensions and retirement benefits needed for support and ERISA qualified
16] Lost earnings payments

17] Wrongful death payments that bankrupted party depended on

18] Wages up to maximum of specified formula (75% of person's disposable income or
30 times federal minimum wage
19] Crime victim's compensation
20] Interest in any property not to exceed $1,075 plus $10,125 of any unused portion of
the homestead exemption (item [1] above); can be used to protect any
type of
property including cash

21] Specified personal injury awards up to $20,200 (not to include pain and suffering or
monetary loss)

c. Above exemptions doubled for married couples

5. Duties of trustee under Chapter 7 bankruptcy (i.e., a liquidation)
a. In general, to liquidate and sell assets owned to pay creditors based on priorities discussed
later
and to examine propriety of claims brought by creditors

(1) Considers how best to sell, use, or lease property of estate to act in best interest of estate
(2) Acquires all legal assets owed to estate for equitable distribution to creditors

(3) Trustee makes interim reports and presents final accounting of the administration of the estate
to the court
6. Powers of trustee
a. Trustee may take any legal action necessary to carry out duties
(1) Trustee may utilize any defense available to the debtor against third parties
(2) Trustee may continue or cease any legal action started by the debtor for the benefit of the es-
tate