What Can You Keep When You’re Bankrupt?

If you are struggling with mounting debt in the Chicago area and you don’t see any way out, don’t panic. Help is available. Discuss your legal options and rights regarding debt as quickly as possible with an experienced Chicago bankruptcy lawyer. When you file for bankruptcy, you’re permitted to keep some of your personal property. These items, called exemptions, include medical devices, a Bible, school books, family pictures, clothing, and prepaid tuition trust funds. You wouldn’t think the exemption for a Bible would be controversial – how much can a used Bible really be worth? It turns out that the personal Bible exemption is controversial after all – that is, when your Bible is the 1830 first edition of the Book of Mormon that Anna Robinson has kept in a Ziploc bag for decades, which was appraised in 2003 as worth at least $10,000.

A federal judge ruled last year that Ms. Robinson, a member of the Church of Jesus Christ of Latter-Day Saints, would not be forced to sell the book to pay creditors after filing for bankruptcy. A mother of three, Ms. Robinson’s income in 2012 was $23,631, according to court papers. The original bankruptcy judge decreed that the book had to be sold. The family already owned more than ten copies of the Book of Mormon, and historic religious books bring good prices from collectors. For example, one early edition of the Book of Mormon sold for $45,000 in 2010, even with part of the cover missing, according to court documents. But last November, U.S. District Judge Staci Yandle overturned the bankruptcy court’s decision.

Bankruptcy law can get complicated, and determining which items qualify as personal exemptions is just the beginning. Don’t go through a bankruptcy alone. Before you file or make any final decision regarding bankruptcy in the Chicago area, speak first – and as quickly as possible – with an experienced Chicago bankruptcy lawyer.