Tools Of The Trade & Exempt Property
21/10/16 Tools Of The Trade & Exempt Property
Tools Of The Trade
The items a person needs to pursue his or her occupation. Many state laws provide that tools of the trade are exempt property — that is, they may not be seized by creditors or by the trustee in a bankruptcy case — either entirely or up to a certain dollar amount.
Property that may not be seized by creditors and does not have to be forfeited in Chapter 7 bankruptcy. Each state has its own list of exempt property; in some states, debtors may choose between the state’s list and a federal list. Typically, states exempt clothing, household furnishings, tools of the debtor’s trade, personal belongings, and other basic possessions. Many states also exempt a certain amount of the debtor’s equity in a home and a vehicle.