The State of NH provides some great resources for people who are having financial difficulties and want to stay in their homes, rather than losing their homes to foreclosure. One of them has been initiated by the governor, called the "New Hampshire Foreclosure Prevention Initiative" and I am part of that initiative. I assist in giving information at their seminars and I provide free consultations for home owners facing financial difficulties.
The goal is to get the information to the people who need it, so they can save their homes, if possible.
A primary resource is found on the HomeHelp web site, click here,
http://www.homehelpnh.org/reverse.htm
There is free counseling available for foreclosure prevention:
click here,
http://www.hud.gov/offices/hsg/sfh/hcc/fc/
Our "older" population is a target for mortgage modification and predatory lender scams, so if you are not sure if the organization you are seeking help from is reputable, call one of the numbers from the HomeHelp web site or call one of the free HUD counselors for information or advice.
Finally, something to think about as our aging population struggles to live on fixed incomes, and that is the reverse morgan option. Information on this option can be found on the HomeHelp web site, click here,
http://www.homehelpnh.org/reverse.htm
Lesson Learned: Avoid scam artists and start with your state agencies to learn more about solving your financial difficulties.
Showing posts with label New Hampshire. Show all posts
Showing posts with label New Hampshire. Show all posts
Wednesday, April 20, 2011
Sunday, April 17, 2011
Credit Counseling and Financial Management Courses to Enter and Exit Bankruptcy
If you are thinking of filing for bankruptcy, under the 2005 changes to the Bankruptcy Code, you are required to take a course before and during the bankruptcy proceeding. The first course is called "Credit Counseling" and the second course is called "Financial Management". It is not time consuming or difficult. It takes about one hour of your time and the cost runs from free to about $50. You can take it on line or in-person. The list of approved agencies can be found on line.
1. Credit Counseling: It is a requirement for anyone filing for bankruptcy to first take the credit counseling course. After you take this mini-lesson, you are issued a Certificate of Credit Counseling. It is a requirement that this Certificate be filed with your bankruptcy petition.
There is a list of approved agencies for New Hampshire (where I practice) on line as well as all of the other states, click below, for the approved agencies for credit counseling courses in New Hampshire:
1. Credit Counseling: It is a requirement for anyone filing for bankruptcy to first take the credit counseling course. After you take this mini-lesson, you are issued a Certificate of Credit Counseling. It is a requirement that this Certificate be filed with your bankruptcy petition.
There is a list of approved agencies for New Hampshire (where I practice) on line as well as all of the other states, click below, for the approved agencies for credit counseling courses in New Hampshire:
My personal preference is the Greenpath Agency. I do not receive anything from Geenpath for saying this - I just find them easy to deal with, and they email me the client's certificate to make it easy to file with the Bankruptcy Court.
2. Financial Management Course: You can take the mini-lesson with the same agency, and here is the approved list for New Hampshire. Again, remember to obtain your certificate as it needs to be filed as well with the Bankruptcy Court.
You cannot fail either course - you just need to take both of them!
Saturday, April 16, 2011
Median Income and Bankruptcy
To initially qualify for Chapter 7, a person whose debts are largely consumer related (such as credit cards, medical bills etc.) must have an income that falls below the person’s state median income average. This does not apply to persons whose debts are NOT primarily consumer debts (such as for example a person whose debts are primarily business related, such as a self-employed person).
Click here for the current chart of state median incomes and remember the $amounts on the chart refer to GROSS income. http://www.justice.gov/ust/eo/bapcpa/20110315/bci_data/median_income_table.htm
Means Testing: Don't despair if your income falls above the median, as the Bankruptcy Code gives you another opportunity to qualify for a Chapter 7 filing by passing the "means test". You apply certain National and Local Standards for expenses to your income to determine if after deducting them, you may still qualify. This can be somewhat complicated and to do this properly may require the assistance of counsel.
The "means test" is found at 11 U.S.C. Section 707(b)(2) of the Bankruptcy Code summarized here:
But, if you want to at least become familiar with the process, start with National Form B22A (click below)
http://www.uscourts.gov/uscourts/RulesAndPolicies/rules/BK%20Forms%201210/B_22A_1210.pdf
and then go to
http://www.justice.gov/ust/eo/bapcpa/20110315/meanstesting.htm
for a listing of the relevant National and Local Standards to apply to your particular case.
Decisions of courts in your jurisdiction interpreting these Standards also affect how the forms are completed and what information is permissible to include - again, a complicated process.
Click here for the current chart of state median incomes and remember the $amounts on the chart refer to GROSS income. http://www.justice.gov/ust/eo/bapcpa/20110315/bci_data/median_income_table.htm
Means Testing: Don't despair if your income falls above the median, as the Bankruptcy Code gives you another opportunity to qualify for a Chapter 7 filing by passing the "means test". You apply certain National and Local Standards for expenses to your income to determine if after deducting them, you may still qualify. This can be somewhat complicated and to do this properly may require the assistance of counsel.
The "means test" is found at 11 U.S.C. Section 707(b)(2) of the Bankruptcy Code summarized here:
Section 707(b)(2) of the Bankruptcy Code applies a "means test" to determine whether an individual debtor's chapter 7 filing is presumed to be an abuse of the Bankruptcy Code requiring dismissal or conversion of the case (generally to chapter 13). Abuse is presumed if the debtor's aggregate current monthly income over 5 years, net of certain statutorily allowed expenses is more than (i) $11,725, or (ii) 25% of the debtor's nonpriority unsecured debt, as long as that amount is at least $7,025. The debtor may rebut a presumption of abuse only by a showing of special circumstances that justify additional expenses or adjustments of current monthly income.
[These dollar amounts are adjusted every year, so please be careful when reading articles or definitions on the subject].
But, if you want to at least become familiar with the process, start with National Form B22A (click below)
http://www.uscourts.gov/uscourts/RulesAndPolicies/rules/BK%20Forms%201210/B_22A_1210.pdf
and then go to
http://www.justice.gov/ust/eo/bapcpa/20110315/meanstesting.htm
for a listing of the relevant National and Local Standards to apply to your particular case.
Decisions of courts in your jurisdiction interpreting these Standards also affect how the forms are completed and what information is permissible to include - again, a complicated process.
Wednesday, April 13, 2011
Am I a failure because I filed for bankruptcy protection?
Will people think poorly of me because I did so? A question that often bubbles to the surface in client meetings, even if never asked, it is there.
Inflation, rising property taxes, trying to help the kids, well you know what's next - use the credit cards to make ends meet. Then there are the school bills, kid's activities, medical bills, and you have run out of money. Retirement is no longer the "golden years" because social security payments just don't cover the bills.
There are a lot of reasons people need protection under the bankruptcy code, one of the most important being people just do not want to lose their home and they don't have to, because bankruptcy gives them a way of staying in their home and catching up on past due mortgage payments, while ridding themselves of credit card debt. Bankruptcy, because of the "exemptions", (please read my blog article on exemptions) allows you to keep a reasonable level of assets, which in most homeowner’s cases is all of the assets they have.
When you decide to address your difficult financial position, you succeed. The solution may be a credit consolidation loan, or it may be a loan modification program with the lender who holds your home mortgage. You may use Chapter 13 of the bankruptcy code to catch up on your overdue car and home loan payments. In any event, when you face the problem and decide to find a solution, you are never a failure. Sometimes, bankruptcy is simply the answer.
You have decided that you will control the outcome of a difficult situation, rather than letting it control you.
Thursday, April 7, 2011
Bankruptcy and the Tax Ramifications of Debt Forgiveness
Mr. and Mrs. X faced a major setback. Mrs. X lost her job in this terrible economy and the unemployment checks just were not enough with her husband's income to meet all of their debt obligations. With the home mortgage, real estate taxes, insurance, credit cards, taking care of the bills generated by the kids, medical bills - it was just too much. The X family tried to obtain a loan modification and the bank would not work with them. Eventually, the bank foreclosed on their home and they are now renters in an apartment building. Mr. and Mrs. X are afraid the bank might pursue them for the difference between what the bank obtained at the foreclosure sale and the balance the X family owed on the mortgage. The credit card companies are now suing Mr. and Mrs. X for the unpaid balances.
Mr. and Mrs. X cannot tolerate the dunning calls from the collection agencies. The world feels like it is crashing down around them. Stress! Mr. and Mrs. X cannot face the mountain of debt and have filed a Chapter 7 petition in bankruptcy. The bankruptcy case went smoothly, the debt was discharged and they are ready to start over in a matter of months. The Chapter 7 bankruptcy gave them the fresh start they needed - they emerged from bankruptcy with their credit card debt discharged and no deficiency claim owed to their mortgagee bank.
April 15 is rapidly approaching and Mr. and Mrs. X need to file their tax returns.
The bank sent Mr. and Mrs. X a form entitled "1099-C" which listed the amount of debt forgiven by the bank on account of the foreclosure sale. Mr. and Mrs. X need to make sure two things are correct on this form i.e. (1) the value of their home when it was foreclosed and (2) the balance of the debt, namely the $amount of debt forgiven. If they dispute either, they need to contact the bank ASAP.
From a tax perspective, Mr. and Mrs. X are now worried they may face paying taxes on the debt forgiveness the bankruptcy code gave them by discharging their credit card debt, and the debt forgiven on the mortgage balance.
Mr. and Mrs. X probably have nothing to worry about as the credit card debt and the amount of debt forgiven on their home due to the discharge received in the bankruptcy case should not be a taxable event for them under current law. However, I am not an accountant and Mr. and Mrs. X should check with either an accountant or tax attorney.
The following points of information may be helpful in seeking answers to their tax questions, remembering that laws and rules and forms change so while the information may be current today, please be sure and determine if the information below has been updated or changed when your needs arise:
First, start with the words of the Bankruptcy Code at Section 346, focusing on subsection j. (The Cornell Law School web site provides great free researching to the general public.) See 11 U.S.C. § 346,
http://www.law.cornell.edu/uscode/html/uscode11/usc_sec_11_00000346----000-.html
And, here are the Legislative Notes on Section 346, which may help you better understand this Code Section,
Second, take a look at Section 108 of the Internal Revenue Code. See 26 USC § 108,
http://www.law.cornell.edu/uscode/26/108.html
Third, although debt discharged in bankruptcy may not be a taxable event to you, it may be a reportable event to the IRS, take a look at the Code of Federal Regulations. See 26 C.F.R. 1.6059p-1(a)(3),
http://edocket.access.gpo.gov/cfr_2005/aprqtr/pdf/26cfr1.6050P-1.pdf
And, take a look at IRS Form 982 regarding reporting:
http://www.irs.gov/pub/irs-pdf/f982.pdf
Fourth, take a look at the information provided by the IRS. This is the Bankruptcy Tax Guide issued by the IRS in March of 2009 (always check the IRS site for more updated publications):
Fifth, is IRS Publication 4681 on cancelled debt (which should be updated shortly, keep going to the IRS site for more updated information):
http://www.irs.gov/publications/p4681/index.html
Finally, this is the Mortgage Cancellation Debt Relief Act and Debt Cancellation information from the IRS web site:
April 15 is rapidly approaching, so good luck with your filing!
Mr. and Mrs. X cannot tolerate the dunning calls from the collection agencies. The world feels like it is crashing down around them. Stress! Mr. and Mrs. X cannot face the mountain of debt and have filed a Chapter 7 petition in bankruptcy. The bankruptcy case went smoothly, the debt was discharged and they are ready to start over in a matter of months. The Chapter 7 bankruptcy gave them the fresh start they needed - they emerged from bankruptcy with their credit card debt discharged and no deficiency claim owed to their mortgagee bank.
April 15 is rapidly approaching and Mr. and Mrs. X need to file their tax returns.
The bank sent Mr. and Mrs. X a form entitled "1099-C" which listed the amount of debt forgiven by the bank on account of the foreclosure sale. Mr. and Mrs. X need to make sure two things are correct on this form i.e. (1) the value of their home when it was foreclosed and (2) the balance of the debt, namely the $amount of debt forgiven. If they dispute either, they need to contact the bank ASAP.
From a tax perspective, Mr. and Mrs. X are now worried they may face paying taxes on the debt forgiveness the bankruptcy code gave them by discharging their credit card debt, and the debt forgiven on the mortgage balance.
Mr. and Mrs. X probably have nothing to worry about as the credit card debt and the amount of debt forgiven on their home due to the discharge received in the bankruptcy case should not be a taxable event for them under current law. However, I am not an accountant and Mr. and Mrs. X should check with either an accountant or tax attorney.
The following points of information may be helpful in seeking answers to their tax questions, remembering that laws and rules and forms change so while the information may be current today, please be sure and determine if the information below has been updated or changed when your needs arise:
First, start with the words of the Bankruptcy Code at Section 346, focusing on subsection j. (The Cornell Law School web site provides great free researching to the general public.) See 11 U.S.C. § 346,
http://www.law.cornell.edu/uscode/html/uscode11/usc_sec_11_00000346----000-.html
And, here are the Legislative Notes on Section 346, which may help you better understand this Code Section,
Second, take a look at Section 108 of the Internal Revenue Code. See 26 USC § 108,
http://www.law.cornell.edu/uscode/26/108.html
Third, although debt discharged in bankruptcy may not be a taxable event to you, it may be a reportable event to the IRS, take a look at the Code of Federal Regulations. See 26 C.F.R. 1.6059p-1(a)(3),
http://edocket.access.gpo.gov/cfr_2005/aprqtr/pdf/26cfr1.6050P-1.pdf
And, take a look at IRS Form 982 regarding reporting:
http://www.irs.gov/pub/irs-pdf/f982.pdf
Fourth, take a look at the information provided by the IRS. This is the Bankruptcy Tax Guide issued by the IRS in March of 2009 (always check the IRS site for more updated publications):
Fifth, is IRS Publication 4681 on cancelled debt (which should be updated shortly, keep going to the IRS site for more updated information):
http://www.irs.gov/publications/p4681/index.html
Finally, this is the Mortgage Cancellation Debt Relief Act and Debt Cancellation information from the IRS web site:
April 15 is rapidly approaching, so good luck with your filing!
Thursday, March 31, 2011
New Hampshire Foreclosure - HELP!
A familiar phone call:
"Hi, I just got a letter from my bank where I have my mortgage and the letter says the bank has scheduled a foreclosure sale - should I be worried?"
The answer to is "yes"!
New Hampshire is a non-judicial foreclosure state. That means, if the lender who holds your mortgage has a "power of sale" clause in the mortgage (and most home lenders do have this clause) then the bank is not required to go to court to take your house if you fall behind in payments. They send you a notice of default, that if not timely corrected, the lender can then schedule a foreclosure sale of your house - the lender must give you at least 25 days notice prior to the sale and publish the notice of the sale three weeks in a row in the newspaper 21 days prior to the sale. So, start to finish, you could be out of your house in four months, depending upon how aggressive your lender is. Real life, most traditional lenders these days are swamped with people who are behind in their mortgage payments, and facing a slew of foreclosure sales.
Click below to see a a chart of the foreclosure timeline, from start to finish, that shows how you can lose your home in 4 months and be evicted and on the street in five months.
http://www.homehelpnh.org/timeline.htm
The state has a wonderful web site with valuable information on understanding your situation. For example, you can receive free help from a HUD counselor to learn if you qualify to modify your mortgage to a more affordable payment than what you are now paying
click here for more information:
http://www.makinghomeaffordable.gov/get-assistance/explore-eligibility/Pages/eligibility.aspx
or:
http://www.makinghomeaffordable.gov/programs/lower-payments/Pages/default.aspx
Once the house is sold at the bank's foreclosure sale, you do not have a right to buy it back, so, if staying in your home is what you want to do, then check out the above programs and see if they help you.
You also have available the right to file a Chapter 13 bankruptcy, often called the "home owner's" bankruptcy because it allows you up to five years to pay back the mortgage arrearages. Bankruptcy stops creditor action against you and gives you a chance to breathe.
For more information, contact:
web site: www.GardnerBusinessLaw.com
"Hi, I just got a letter from my bank where I have my mortgage and the letter says the bank has scheduled a foreclosure sale - should I be worried?"
The answer to is "yes"!
New Hampshire is a non-judicial foreclosure state. That means, if the lender who holds your mortgage has a "power of sale" clause in the mortgage (and most home lenders do have this clause) then the bank is not required to go to court to take your house if you fall behind in payments. They send you a notice of default, that if not timely corrected, the lender can then schedule a foreclosure sale of your house - the lender must give you at least 25 days notice prior to the sale and publish the notice of the sale three weeks in a row in the newspaper 21 days prior to the sale. So, start to finish, you could be out of your house in four months, depending upon how aggressive your lender is. Real life, most traditional lenders these days are swamped with people who are behind in their mortgage payments, and facing a slew of foreclosure sales.
Click below to see a a chart of the foreclosure timeline, from start to finish, that shows how you can lose your home in 4 months and be evicted and on the street in five months.
http://www.homehelpnh.org/timeline.htm
The state has a wonderful web site with valuable information on understanding your situation. For example, you can receive free help from a HUD counselor to learn if you qualify to modify your mortgage to a more affordable payment than what you are now paying
click here for more information:
http://www.makinghomeaffordable.gov/get-assistance/explore-eligibility/Pages/eligibility.aspx
or:
http://www.makinghomeaffordable.gov/programs/lower-payments/Pages/default.aspx
Once the house is sold at the bank's foreclosure sale, you do not have a right to buy it back, so, if staying in your home is what you want to do, then check out the above programs and see if they help you.
You also have available the right to file a Chapter 13 bankruptcy, often called the "home owner's" bankruptcy because it allows you up to five years to pay back the mortgage arrearages. Bankruptcy stops creditor action against you and gives you a chance to breathe.
For more information, contact:
web site: www.GardnerBusinessLaw.com
Thursday, March 3, 2011
EXEMPTIONS - Bankruptcy Code
When someone files for bankruptcy protection, they may “exempt” certain assets from the reach of their creditors. That means that regardless of the bankruptcy filing, he/she may keep the exempt assets up to the value of the allowed exemption.
In New Hampshire, a person who files for bankruptcy may choose either the New Hampshire state exemptions or the Bankruptcy Code Exemptions under 11 U.S.C. § 522 - but he/she cannot choose both. (Please read the separate posting on "EXEMPTIONS - State" for the NH State exemptions).
STATE EXEMPTIONS: The state exemptions are those assets and wages which the state would normally not allow creditors to take to satisfy a debt (with limited exceptions such as taxes and child support). There are many other non-bankruptcy federal exemptions that can be taken as well.
BANKRUPTCY CODE SECTION 522 EXEMPTIONS: If your situation fits better within the Bankruptcy Code exemptions, then the person who files for bankruptcy may elect the Bankruptcy Code Exemptions instead of the state exemptions.
Below are the Bankruptcy Code Exemptions. Be aware that there are some very limited exceptions to exempting your assets and wages from the reach of creditors. For example, if the IRS has asserted a valid lien for non-dischargeable tax debt, the IRS lien may reach the exempt assets.
FEDERAL BANKRUPTCY CODE EXEMPTIONS.
If a person elects to use the exemptions under the Federal Bankruptcy Code, rather than electing under the New Hampshire State exemption scheme (which includes the NH State exemptions and other Federal Law exemptions not otherwise covered in the Bankruptcy code for the Federal election) then they are set forth at 11 U.S.C. § 522. That entire section is reprinted below.
§ 522. Exemptions
(a) In this section--
(1) "dependent" includes spouse, whether or not actually dependent; and
(2) "value" means fair market value as of the date of the filing of the petition or, with respect to property that becomes property of the estate after such date, as of the date such property becomes property of the estate.
(b) (1) Notwithstanding section 541 of this title [11 USCS § 541], an individual debtor may exempt from property of the estate the property listed in either paragraph (2) or, in the alternative, paragraph (3) of this subsection. In joint cases filed under section 302 of this title [11 USCS § 302] and individual cases filed under section 301 or 303 of this title [11 USCS § 301 or 303] by or against debtors who are husband and wife, and whose estates are ordered to be jointly administered under Rule 1015(b) of the Federal Rules of Bankruptcy Procedure, one debtor may not elect to exempt property listed in paragraph (2) and the other debtor elect to exempt property listed in paragraph (3) of this subsection. If the parties cannot agree on the alternative to be elected, they shall be deemed to elect paragraph (2), where such election is permitted under the law of the jurisdiction where the case is filed.
(2) [Federal exemptions under the Code] Property listed in this paragraph is property that is specified under subsection (d), unless the State law that is applicable to the debtor under paragraph (3)(A) specifically does not so authorize.
(3) [NH State Exemptions referenced at this section 3] Property listed in this paragraph is--
(A) subject to subsections (o) and (p), any property that is exempt under Federal law, other than subsection (d) of this section, or State or local law that is applicable on the date of the filing of the petition to the place in which the debtor's domicile has been located for the 730 days immediately preceding the date of the filing of the petition or if the debtor's domicile has not been located in a single State for such 730-day period, the place in which the debtor's domicile was located for 180 days immediately preceding the 730-day period or for a longer portion of such 180-day period than in any other place;
(B) any interest in property in which the debtor had, immediately before the commencement of the case, an interest as a tenant by the entirety or joint tenant to the extent that such interest as a tenant by the entirety or joint tenant is exempt from process under applicable nonbankruptcy law; and
(C) retirement funds to the extent that those funds are in a fund or account that is exempt from taxation under section 401, 403, 408, 408A, 414, 457, or 501(a) of the Internal Revenue Code of 1986 [26 USCS § 401, 403, 408, 408A, 414, 457, or 501(a)].
If the effect of the domiciliary requirement under subparagraph (A) is to render the debtor ineligible for any exemption, the debtor may elect to exempt property that is specified under subsection (d).
(4) For purposes of paragraph (3)(C) and subsection (d)(12), the following shall apply:
(A) If the retirement funds are in a retirement fund that has received a favorable determination under section 7805 of the Internal Revenue Code of 1986 [26 USCS § 7805], and that determination is in effect as of the date of the filing of the petition in a case under this title, those funds shall be presumed to be exempt from the estate.
(B) If the retirement funds are in a retirement fund that has not received a favorable determination under such section 7805 [26 USCS § 7805], those funds are exempt from the estate if the debtor demonstrates that--
(i) no prior determination to the contrary has been made by a court or the Internal Revenue Service; and
(ii) (I) the retirement fund is in substantial compliance with the applicable requirements of the Internal Revenue Code of 1986 [26 USCS §§ 1 et seq.]; or
(II) the retirement fund fails to be in substantial compliance with the applicable requirements of the Internal Revenue Code of 1986 [26 USCS §§ 1 et seq.] and the debtor is not materially responsible for that failure.
(C) A direct transfer of retirement funds from 1 fund or account that is exempt from taxation under section 401, 403, 408, 408A, 414, 457, or 501(a) of the Internal Revenue Code of 1986 [26 USCS § 401, 403, 408, 408A, 414, 457, or 501(a)], under section 401(a)(31) of the Internal Revenue Code of 1986 [26 USCS § 401(a)(31)], or otherwise, shall not cease to qualify for exemption under paragraph (3)(C) or subsection (d)(12) by reason of such direct transfer.
(D) (i) Any distribution that qualifies as an eligible rollover distribution within the meaning of section 402(c) of the Internal Revenue Code of 1986 [26 USCS § 402(c)] or that is described in clause (ii) shall not cease to qualify for exemption under paragraph (3)(C) or subsection (d)(12) by reason of such distribution.
(ii) A distribution described in this clause is an amount that--
(I) has been distributed from a fund or account that is exempt from taxation under section 401, 403, 408, 408A, 414, 457, or 501(a) of the Internal Revenue Code of 1986 [26 USCS § 401, 403, 408, 408A, 414, 457, or 501(a)]; and
(II) to the extent allowed by law, is deposited in such a fund or account not later than 60 days after the distribution of such amount.
(c) Unless the case is dismissed, property exempted under this section is not liable during or after the case for any debt of the debtor that arose, or that is determined under section 502 of this title [11 USCS § 502] as if such debt had arisen, before the commencement of the case, except--
(1) a debt of a kind specified in paragraph (1) or (5) of section 523(a) [11 USCS § 523(a)] (in which case, notwithstanding any provision of applicable nonbankruptcy law to the contrary, such property shall be liable for a debt of a kind specified in such paragraph);
(2) a debt secured by a lien that is--
(A) (i) not avoided under subsection (f) or (g) of this section or under section 544, 545, 547, 548, 549, or 724(a) of this title [11 USCS § 544, 545, 547, 548, 549, or 724(a)]; and
(ii) not void under section 506(d) of this title [11 USCS § 506(d)]; or
(B) a tax lien, notice of which is properly filed;
(3) a debt of a kind specified in section 523(a)(4) or 523(a)(6) of this title [11 USCS § 523(a)(4) or 523(a)(6)] owed by an institution-affiliated party of an insured depository institution to a Federal depository institutions regulatory agency acting in its capacity as conservator, receiver, or liquidating agent for such institution; or
(4) a debt in connection with fraud in the obtaining or providing of any scholarship, grant, loan, tuition, discount, award, or other financial assistance for purposes of financing an education at an institution of higher education (as that term is defined in section 101 of the Higher Education Act of 1965 (20 U.S.C. 1001)).
(d) [Federal Code Exemptions] The following property may be exempted under subsection (b)(2) of this section:
(1) The debtor's aggregate interest, not to exceed $ 21,625 in value, in real property or personal property that the debtor or a dependent of the debtor uses as a residence, in a cooperative that owns property that the debtor or a dependent of the debtor uses as a residence, or in a burial plot for the debtor or a dependent of the debtor.
(2) The debtor's interest, not to exceed $ 3,450 in value, in one motor vehicle.
(3) The debtor's interest, not to exceed $ 550 in value in any particular item or $ 11,525 in aggregate value, in household furnishings, household goods, wearing apparel, appliances, books, animals, crops, or musical instruments, that are held primarily for the personal, family, or household use of the debtor or a dependent of the debtor.
(4) The debtor's aggregate interest, not to exceed $ 1,450 in value, in jewelry held primarily for the personal, family, or household use of the debtor or a dependent of the debtor.
(5) The debtor's aggregate interest in any property, not to exceed in value $ 1,150 plus up to $ 10,825 of any unused amount of the exemption provided under paragraph (1) of this subsection.
(6) The debtor's aggregate interest, not to exceed $ 2,175 in value, in any implements, professional books, or tools, of the trade of the debtor or the trade of a dependent of the debtor.
(7) Any unmatured life insurance contract owned by the debtor, other than a credit life insurance contract.
(8) The debtor's aggregate interest, not to exceed in value $ 11,525 less any amount of property of the estate transferred in the manner specified in section 542(d) of this title [11 USCS § 542(d)], in any accrued dividend or interest under, or loan value of, any unmatured life insurance contract owned by the debtor under which the insured is the debtor or an individual of whom the debtor is a dependent.
(9) Professionally prescribed health aids for the debtor or a dependent of the debtor.
(10) The debtor's right to receive--
(A) a social security benefit, unemployment compensation, or a local public assistance benefit;
(B) a veterans' benefit;
(C) a disability, illness, or unemployment benefit;
(D) alimony, support, or separate maintenance, to the extent reasonably necessary for the support of the debtor and any dependent of the debtor;
(E) a payment under a stock bonus, pension, profit-sharing, annuity, or similar plan or contract on account of illness, disability, death, age, or length of service, to the extent reasonably necessary for the support of the debtor and any dependent of the debtor, unless--
(i) such plan or contract was established by or under the auspices of an insider that employed the debtor at the time the debtor's rights under such plan or contract arose;
(ii) such payment is on account of age or length of service; and
(iii) such plan or contract does not qualify under section 401(a), 403(a), 403(b), or 408 of the Internal Revenue Code of 1986 [26 USCS § 401(a), 403(a), 403(b), or 408].
(11) The debtor's right to receive, or property that is traceable to--
(A) an award under a crime victim's reparation law;
(B) a payment on account of the wrongful death of an individual of whom the debtor was a dependent, to the extent reasonably necessary for the support of the debtor and any dependent of the debtor;
(C) a payment under a life insurance contract that insured the life of an individual of whom the debtor was a dependent on the date of such individual's death, to the extent reasonably necessary for the support of the debtor and any dependent of the debtor;
(D) a payment, not to exceed $ 21,625, on account of personal bodily injury, not including pain and suffering or compensation for actual pecuniary loss, of the debtor or an individual of whom the debtor is a dependent; or
(E) a payment in compensation of loss of future earnings of the debtor or an individual of whom the debtor is or was a dependent, to the extent reasonably necessary for the support of the debtor and any dependent of the debtor.
(12) Retirement funds to the extent that those funds are in a fund or account that is exempt from taxation under section 401, 403, 408, 408A, 414, 457, or 501(a) of the Internal Revenue Code of 1986 [26 USCS § 401, 403, 408, 408A, 414, 457, or 501(a)].
(e) A waiver of an exemption executed in favor of a creditor that holds an unsecured claim against the debtor is unenforceable in a case under this title with respect to such claim against property that the debtor may exempt under subsection (b) of this section. A waiver by the debtor of a power under subsection (f) or (h) of this section to avoid a transfer, under subsection (g) or (i) of this section to exempt property, or under subsection (i) of this section to recover property or to preserve a transfer, is unenforceable in a case under this title.
(f) (1) Notwithstanding any waiver of exemptions but subject to paragraph (3), the debtor may avoid the fixing of a lien on an interest of the debtor in property to the extent that such lien impairs an exemption to which the debtor would have been entitled under subsection (b) of this section, if such lien is--
(A) a judicial lien, other than a judicial lien that secures a debt of a kind that is specified in section 523(a)(5) [11 USCS § 523(a)(5)]; or
(B) a nonpossessory, nonpurchase-money security interest in any--
(i) household furnishings, household goods, wearing apparel, appliances, books, animals, crops, musical instruments, or jewelry that are held primarily for the personal, family, or household use of the debtor or a dependent of the debtor;
(ii) implements, professional books, or tools, of the trade of the debtor or the trade of a dependent of the debtor; or
(iii) professionally prescribed health aids for the debtor or a dependent of the debtor.
(2)
(A) For the purposes of this subsection, a lien shall be considered to impair an exemption to the extent that the sum of--
(i) the lien;
(ii) all other liens on the property; and
(iii) the amount of the exemption that the debtor could claim if there were no liens on the property;
exceeds the value that the debtor's interest in the property would have in the absence of any liens.
(B) In the case of a property subject to more than 1 lien, a lien that has been avoided shall not be considered in making the calculation under subparagraph (A) with respect to other liens.
(C) This paragraph shall not apply with respect to a judgment arising out of a mortgage foreclosure.
(3) In a case in which State law that is applicable to the debtor--
(A) permits a person to voluntarily waive a right to claim exemptions under subsection (d) or prohibits a debtor from claiming exemptions under subsection (d); and
(B) either permits the debtor to claim exemptions under State law without limitation in amount, except to the extent that the debtor has permitted the fixing of a consensual lien on any property or prohibits avoidance of a consensual lien on property otherwise eligible to be claimed as exempt property;
the debtor may not avoid the fixing of a lien on an interest of the debtor or a dependent of the debtor in property if the lien is a nonpossessory, nonpurchase-money security interest in implements, professional books, or tools of the trade of the debtor or a dependent of the debtor or farm animals or crops of the debtor or a dependent of the debtor to the extent the value of such implements, professional books, tools of the trade, animals, and crops exceeds $ 5,850.
(4) (A) Subject to subparagraph (B), for purposes of paragraph (1)(B), the term "household goods" means--
(i) clothing;
(ii) furniture;
(iii) appliances;
(iv) 1 radio;
(v) 1 television;
(vi) 1 VCR;
(vii) linens;
(viii) china;
(ix) crockery;
(x) kitchenware;
(xi) educational materials and educational equipment primarily for the use of minor dependent children of the debtor;
(xii) medical equipment and supplies;
(xiii) furniture exclusively for the use of minor children, or elderly or disabled dependents of the debtor;
(xiv) personal effects (including the toys and hobby equipment of minor dependent children and wedding rings) of the debtor and the dependents of the debtor; and
(xv) 1 personal computer and related equipment.
(B) The term "household goods" does not include--
(i) works of art (unless by or of the debtor, or any relative of the debtor);
(ii) electronic entertainment equipment with a fair market value of more than $ 600 in the aggregate (except 1 television, 1 radio, and 1 VCR);
(iii) items acquired as antiques with a fair market value of more than $ 600 in the aggregate;
(iv) jewelry with a fair market value of more than $ 600 in the aggregate (except wedding rings); and
(v) a computer (except as otherwise provided for in this section), motor vehicle (including a tractor or lawn tractor), boat, or a motorized recreational device, conveyance, vehicle, watercraft, or aircraft.
(g) Notwithstanding sections 550 and 551 of this title [11 USCS §§ 550 and 551], the debtor may exempt under subsection (b) of this section property that the trustee recovers under section 510(c)(2), 542, 543, 550, 551, or 553 of this title [11 USCS § 510(c)(2), 542, 543, 550, 551, or 553], to the extent that the debtor could have exempted such property under subsection (b) of this section if such property had not been transferred, if--
(1)
(A) such transfer was not a voluntary transfer of such property by the debtor; and
(B) the debtor did not conceal such property; or
(2) The debtor could have avoided such transfer under subsection (f)(1)(B) of this section.
(h) The debtor may avoid a transfer of property of the debtor or recover a setoff to the extent that the debtor could have exempted such property under subsection (g)(1) of this section if the trustee had avoided such transfer, if--
(1) such transfer is avoidable by the trustee under section 544, 545, 547, 548, 549, or 724(a) of this title [11 USCS § 544, 545, 547, 548, 549, or 724(a)] or recoverable by the trustee under section 553 of this title [11 USCS § 553]; and
(2) the trustee does not attempt to avoid such transfer.
(i) (1) If the debtor avoids a transfer or recovers a setoff under subsection (f) or (h) of this section, the debtor may recover in the manner prescribed by, and subject to the limitations of, section 550 of this title [11 USCS § 550], the same as if the trustee had avoided such transfer, and may exempt any property so recovered under subsection (b) of this section.
(2) Notwithstanding section 551 of this title [11 USCS § 551], a transfer avoided under section 544, 545, 547, 548, 549, or 724(a) of this title [11 USCS § 544, 545, 547, 548, 549, or 724(a)], under subsection (f) or (h) of this section, or property recovered under section 553 of this title [11 USCS § 553], may be preserved for the benefit of the debtor to the extent that the debtor may exempt such property under subsection (g) of this section or paragraph (1) of this subsection.
(j) Notwithstanding subsections (g) and (i) of this section, the debtor may exempt a particular kind of property under subsections (g) and (i) of this section only to the extent that the debtor has exempted less property in value of such kind than that to which the debtor is entitled under subsection (b) of this section.
(k) Property that the debtor exempts under this section is not liable for payment of any administrative expense except--
(1) the aliquot share of the costs and expenses of avoiding a transfer of property that the debtor exempts under subsection (g) of this section, or of recovery of such property, that is attributable to the value of the portion of such property exempted in relation to the value of the property recovered; and
(2) any costs and expenses of avoiding a transfer under subsection (f) or (h) of this section, or of recovery of property under subsection (i)(1) of this section, that the debtor has not paid.
(l) The debtor shall file a list of property that the debtor claims as exempt under subsection (b) of this section. If the debtor does not file such a list, a dependent of the debtor may file such a list, or may claim property as exempt from property of the estate on behalf of the debtor. Unless a party in interest objects, the property claimed as exempt on such list is exempt.
(m) Subject to the limitation in subsection (b), this section shall apply separately with respect to each debtor in a joint case.
(n) For assets in individual retirement accounts described in section 408 or 408A of the Internal Revenue Code of 1986 [26 USCS § 408 or 408A], other than a simplified employee pension under section 408(k) of such Code [26 USCS § 408(k)] or a simple retirement account under section 408(p) of such Code [26 USCS § 408(p)], the aggregate value of such assets exempted under this section, without regard to amounts attributable to rollover contributions under section 402(c), 402(e)(6), 403(a)(4), 403(a)(5), and 403(b)(8) of the Internal Revenue Code of 1986 [26 USCS § 402(c), 402(e)(6), 403(a)(4), 403(a)(5), and 403(b)(8)], and earnings thereon, shall not exceed $ 1,171,650 in a case filed by a debtor who is an individual, except that such amount may be increased if the interests of justice so require.
(o) For purposes of subsection (b)(3)(A), and notwithstanding subsection (a), the value of an interest in--
(1) real or personal property that the debtor or a dependent of the debtor uses as a residence;
(2) a cooperative that owns property that the debtor or a dependent of the debtor uses as a residence;
(3) a burial plot for the debtor or a dependent of the debtor; or
(4) real or personal property that the debtor or a dependent of the debtor claims as a homestead;
shall be reduced to the extent that such value is attributable to any portion of any property that the debtor disposed of in the 10-year period ending on the date of the filing of the petition with the intent to hinder, delay, or defraud a creditor and that the debtor could not exempt, or that portion that the debtor could not exempt, under subsection (b), if on such date the debtor had held the property so disposed of.
(p) (1) Except as provided in paragraph (2) of this subsection and sections 544 and 548 [11 USCS §§ 544 and 548], as a result of electing under subsection (b)(3)(A) to exempt property under State or local law, a debtor may not exempt any amount of interest that was acquired by the debtor during the 1215-day period preceding the date of the filing of the petition that exceeds in the aggregate $ 146,450 in value in--
(A) real or personal property that the debtor or a dependent of the debtor uses as a residence;
(B) a cooperative that owns property that the debtor or a dependent of the debtor uses as a residence;
(C) a burial plot for the debtor or a dependent of the debtor; or
(D) real or personal property that the debtor or dependent of the debtor claims as a homestead.
(2) (A) The limitation under paragraph (1) shall not apply to an exemption claimed under subsection (b)(3)(A) by a family farmer for the principal residence of such farmer.
(B) For purposes of paragraph (1), any amount of such interest does not include any interest transferred from a debtor's previous principal residence (which was acquired prior to the beginning of such 1215-day period) into the debtor's current principal residence, if the debtor's previous and current residences are located in the same State.
(q) (1) As a result of electing under subsection (b)(3)(A) to exempt property under State or local law, a debtor may not exempt any amount of an interest in property described in subparagraphs (A), (B), (C), and (D) of subsection (p)(1) which exceeds in the aggregate $ 146,450 if--
(A) the court determines, after notice and a hearing, that the debtor has been convicted of a felony (as defined in section 3156 of title 18 [18 USCS § 3156]), which under the circumstances, demonstrates that the filing of the case was an abuse of the provisions of this title; or
(B) the debtor owes a debt arising from--
(i) any violation of the Federal securities laws (as defined in section 3(a)(47) of the Securities Exchange Act of 1934 [15 USCS § 78c(a)(47)]), any State securities laws, or any regulation or order issued under Federal securities laws or State securities laws;
(ii) fraud, deceit, or manipulation in a fiduciary capacity or in connection with the purchase or sale of any security registered under section 12 or 15(d) of the Securities Exchange Act of 1934 [15 USCS § 78l or 78o(d)] or under section 6 of the Securities Act of 1933 [15 USCS § 77f];
(iii) any civil remedy under section 1964 of title 18; or
(iv) any criminal act, intentional tort, or willful or reckless misconduct that caused serious physical injury or death to another individual in the preceding 5 years.
(2) Paragraph (1) shall not apply to the extent the amount of an interest in property described in subparagraphs (A), (B), (C), and (D) of subsection (p)(1) is reasonably necessary for the support of the debtor and any dependent of the debtor.
(a) In this section--
(1) "dependent" includes spouse, whether or not actually dependent; and
(2) "value" means fair market value as of the date of the filing of the petition or, with respect to property that becomes property of the estate after such date, as of the date such property becomes property of the estate.
(b) (1) Notwithstanding section 541 of this title [11 USCS § 541], an individual debtor may exempt from property of the estate the property listed in either paragraph (2) or, in the alternative, paragraph (3) of this subsection. In joint cases filed under section 302 of this title [11 USCS § 302] and individual cases filed under section 301 or 303 of this title [11 USCS § 301 or 303] by or against debtors who are husband and wife, and whose estates are ordered to be jointly administered under Rule 1015(b) of the Federal Rules of Bankruptcy Procedure, one debtor may not elect to exempt property listed in paragraph (2) and the other debtor elect to exempt property listed in paragraph (3) of this subsection. If the parties cannot agree on the alternative to be elected, they shall be deemed to elect paragraph (2), where such election is permitted under the law of the jurisdiction where the case is filed.
(2) [Federal exemptions under the Code] Property listed in this paragraph is property that is specified under subsection (d), unless the State law that is applicable to the debtor under paragraph (3)(A) specifically does not so authorize.
(3) [NH State Exemptions referenced at this section 3] Property listed in this paragraph is--
(A) subject to subsections (o) and (p), any property that is exempt under Federal law, other than subsection (d) of this section, or State or local law that is applicable on the date of the filing of the petition to the place in which the debtor's domicile has been located for the 730 days immediately preceding the date of the filing of the petition or if the debtor's domicile has not been located in a single State for such 730-day period, the place in which the debtor's domicile was located for 180 days immediately preceding the 730-day period or for a longer portion of such 180-day period than in any other place;
(B) any interest in property in which the debtor had, immediately before the commencement of the case, an interest as a tenant by the entirety or joint tenant to the extent that such interest as a tenant by the entirety or joint tenant is exempt from process under applicable nonbankruptcy law; and
(C) retirement funds to the extent that those funds are in a fund or account that is exempt from taxation under section 401, 403, 408, 408A, 414, 457, or 501(a) of the Internal Revenue Code of 1986 [26 USCS § 401, 403, 408, 408A, 414, 457, or 501(a)].
If the effect of the domiciliary requirement under subparagraph (A) is to render the debtor ineligible for any exemption, the debtor may elect to exempt property that is specified under subsection (d).
(4) For purposes of paragraph (3)(C) and subsection (d)(12), the following shall apply:
(A) If the retirement funds are in a retirement fund that has received a favorable determination under section 7805 of the Internal Revenue Code of 1986 [26 USCS § 7805], and that determination is in effect as of the date of the filing of the petition in a case under this title, those funds shall be presumed to be exempt from the estate.
(B) If the retirement funds are in a retirement fund that has not received a favorable determination under such section 7805 [26 USCS § 7805], those funds are exempt from the estate if the debtor demonstrates that--
(i) no prior determination to the contrary has been made by a court or the Internal Revenue Service; and
(ii) (I) the retirement fund is in substantial compliance with the applicable requirements of the Internal Revenue Code of 1986 [26 USCS §§ 1 et seq.]; or
(II) the retirement fund fails to be in substantial compliance with the applicable requirements of the Internal Revenue Code of 1986 [26 USCS §§ 1 et seq.] and the debtor is not materially responsible for that failure.
(C) A direct transfer of retirement funds from 1 fund or account that is exempt from taxation under section 401, 403, 408, 408A, 414, 457, or 501(a) of the Internal Revenue Code of 1986 [26 USCS § 401, 403, 408, 408A, 414, 457, or 501(a)], under section 401(a)(31) of the Internal Revenue Code of 1986 [26 USCS § 401(a)(31)], or otherwise, shall not cease to qualify for exemption under paragraph (3)(C) or subsection (d)(12) by reason of such direct transfer.
(D) (i) Any distribution that qualifies as an eligible rollover distribution within the meaning of section 402(c) of the Internal Revenue Code of 1986 [26 USCS § 402(c)] or that is described in clause (ii) shall not cease to qualify for exemption under paragraph (3)(C) or subsection (d)(12) by reason of such distribution.
(ii) A distribution described in this clause is an amount that--
(I) has been distributed from a fund or account that is exempt from taxation under section 401, 403, 408, 408A, 414, 457, or 501(a) of the Internal Revenue Code of 1986 [26 USCS § 401, 403, 408, 408A, 414, 457, or 501(a)]; and
(II) to the extent allowed by law, is deposited in such a fund or account not later than 60 days after the distribution of such amount.
(c) Unless the case is dismissed, property exempted under this section is not liable during or after the case for any debt of the debtor that arose, or that is determined under section 502 of this title [11 USCS § 502] as if such debt had arisen, before the commencement of the case, except--
(1) a debt of a kind specified in paragraph (1) or (5) of section 523(a) [11 USCS § 523(a)] (in which case, notwithstanding any provision of applicable nonbankruptcy law to the contrary, such property shall be liable for a debt of a kind specified in such paragraph);
(2) a debt secured by a lien that is--
(A) (i) not avoided under subsection (f) or (g) of this section or under section 544, 545, 547, 548, 549, or 724(a) of this title [11 USCS § 544, 545, 547, 548, 549, or 724(a)]; and
(ii) not void under section 506(d) of this title [11 USCS § 506(d)]; or
(B) a tax lien, notice of which is properly filed;
(3) a debt of a kind specified in section 523(a)(4) or 523(a)(6) of this title [11 USCS § 523(a)(4) or 523(a)(6)] owed by an institution-affiliated party of an insured depository institution to a Federal depository institutions regulatory agency acting in its capacity as conservator, receiver, or liquidating agent for such institution; or
(4) a debt in connection with fraud in the obtaining or providing of any scholarship, grant, loan, tuition, discount, award, or other financial assistance for purposes of financing an education at an institution of higher education (as that term is defined in section 101 of the Higher Education Act of 1965 (20 U.S.C. 1001)).
(d) [Federal Code Exemptions] The following property may be exempted under subsection (b)(2) of this section:
(1) The debtor's aggregate interest, not to exceed $ 21,625 in value, in real property or personal property that the debtor or a dependent of the debtor uses as a residence, in a cooperative that owns property that the debtor or a dependent of the debtor uses as a residence, or in a burial plot for the debtor or a dependent of the debtor.
(2) The debtor's interest, not to exceed $ 3,450 in value, in one motor vehicle.
(3) The debtor's interest, not to exceed $ 550 in value in any particular item or $ 11,525 in aggregate value, in household furnishings, household goods, wearing apparel, appliances, books, animals, crops, or musical instruments, that are held primarily for the personal, family, or household use of the debtor or a dependent of the debtor.
(4) The debtor's aggregate interest, not to exceed $ 1,450 in value, in jewelry held primarily for the personal, family, or household use of the debtor or a dependent of the debtor.
(5) The debtor's aggregate interest in any property, not to exceed in value $ 1,150 plus up to $ 10,825 of any unused amount of the exemption provided under paragraph (1) of this subsection.
(6) The debtor's aggregate interest, not to exceed $ 2,175 in value, in any implements, professional books, or tools, of the trade of the debtor or the trade of a dependent of the debtor.
(7) Any unmatured life insurance contract owned by the debtor, other than a credit life insurance contract.
(8) The debtor's aggregate interest, not to exceed in value $ 11,525 less any amount of property of the estate transferred in the manner specified in section 542(d) of this title [11 USCS § 542(d)], in any accrued dividend or interest under, or loan value of, any unmatured life insurance contract owned by the debtor under which the insured is the debtor or an individual of whom the debtor is a dependent.
(9) Professionally prescribed health aids for the debtor or a dependent of the debtor.
(10) The debtor's right to receive--
(A) a social security benefit, unemployment compensation, or a local public assistance benefit;
(B) a veterans' benefit;
(C) a disability, illness, or unemployment benefit;
(D) alimony, support, or separate maintenance, to the extent reasonably necessary for the support of the debtor and any dependent of the debtor;
(E) a payment under a stock bonus, pension, profit-sharing, annuity, or similar plan or contract on account of illness, disability, death, age, or length of service, to the extent reasonably necessary for the support of the debtor and any dependent of the debtor, unless--
(i) such plan or contract was established by or under the auspices of an insider that employed the debtor at the time the debtor's rights under such plan or contract arose;
(ii) such payment is on account of age or length of service; and
(iii) such plan or contract does not qualify under section 401(a), 403(a), 403(b), or 408 of the Internal Revenue Code of 1986 [26 USCS § 401(a), 403(a), 403(b), or 408].
(11) The debtor's right to receive, or property that is traceable to--
(A) an award under a crime victim's reparation law;
(B) a payment on account of the wrongful death of an individual of whom the debtor was a dependent, to the extent reasonably necessary for the support of the debtor and any dependent of the debtor;
(C) a payment under a life insurance contract that insured the life of an individual of whom the debtor was a dependent on the date of such individual's death, to the extent reasonably necessary for the support of the debtor and any dependent of the debtor;
(D) a payment, not to exceed $ 21,625, on account of personal bodily injury, not including pain and suffering or compensation for actual pecuniary loss, of the debtor or an individual of whom the debtor is a dependent; or
(E) a payment in compensation of loss of future earnings of the debtor or an individual of whom the debtor is or was a dependent, to the extent reasonably necessary for the support of the debtor and any dependent of the debtor.
(12) Retirement funds to the extent that those funds are in a fund or account that is exempt from taxation under section 401, 403, 408, 408A, 414, 457, or 501(a) of the Internal Revenue Code of 1986 [26 USCS § 401, 403, 408, 408A, 414, 457, or 501(a)].
(e) A waiver of an exemption executed in favor of a creditor that holds an unsecured claim against the debtor is unenforceable in a case under this title with respect to such claim against property that the debtor may exempt under subsection (b) of this section. A waiver by the debtor of a power under subsection (f) or (h) of this section to avoid a transfer, under subsection (g) or (i) of this section to exempt property, or under subsection (i) of this section to recover property or to preserve a transfer, is unenforceable in a case under this title.
(f) (1) Notwithstanding any waiver of exemptions but subject to paragraph (3), the debtor may avoid the fixing of a lien on an interest of the debtor in property to the extent that such lien impairs an exemption to which the debtor would have been entitled under subsection (b) of this section, if such lien is--
(A) a judicial lien, other than a judicial lien that secures a debt of a kind that is specified in section 523(a)(5) [11 USCS § 523(a)(5)]; or
(B) a nonpossessory, nonpurchase-money security interest in any--
(i) household furnishings, household goods, wearing apparel, appliances, books, animals, crops, musical instruments, or jewelry that are held primarily for the personal, family, or household use of the debtor or a dependent of the debtor;
(ii) implements, professional books, or tools, of the trade of the debtor or the trade of a dependent of the debtor; or
(iii) professionally prescribed health aids for the debtor or a dependent of the debtor.
(2)
(A) For the purposes of this subsection, a lien shall be considered to impair an exemption to the extent that the sum of--
(i) the lien;
(ii) all other liens on the property; and
(iii) the amount of the exemption that the debtor could claim if there were no liens on the property;
exceeds the value that the debtor's interest in the property would have in the absence of any liens.
(B) In the case of a property subject to more than 1 lien, a lien that has been avoided shall not be considered in making the calculation under subparagraph (A) with respect to other liens.
(C) This paragraph shall not apply with respect to a judgment arising out of a mortgage foreclosure.
(3) In a case in which State law that is applicable to the debtor--
(A) permits a person to voluntarily waive a right to claim exemptions under subsection (d) or prohibits a debtor from claiming exemptions under subsection (d); and
(B) either permits the debtor to claim exemptions under State law without limitation in amount, except to the extent that the debtor has permitted the fixing of a consensual lien on any property or prohibits avoidance of a consensual lien on property otherwise eligible to be claimed as exempt property;
the debtor may not avoid the fixing of a lien on an interest of the debtor or a dependent of the debtor in property if the lien is a nonpossessory, nonpurchase-money security interest in implements, professional books, or tools of the trade of the debtor or a dependent of the debtor or farm animals or crops of the debtor or a dependent of the debtor to the extent the value of such implements, professional books, tools of the trade, animals, and crops exceeds $ 5,850.
(4) (A) Subject to subparagraph (B), for purposes of paragraph (1)(B), the term "household goods" means--
(i) clothing;
(ii) furniture;
(iii) appliances;
(iv) 1 radio;
(v) 1 television;
(vi) 1 VCR;
(vii) linens;
(viii) china;
(ix) crockery;
(x) kitchenware;
(xi) educational materials and educational equipment primarily for the use of minor dependent children of the debtor;
(xii) medical equipment and supplies;
(xiii) furniture exclusively for the use of minor children, or elderly or disabled dependents of the debtor;
(xiv) personal effects (including the toys and hobby equipment of minor dependent children and wedding rings) of the debtor and the dependents of the debtor; and
(xv) 1 personal computer and related equipment.
(B) The term "household goods" does not include--
(i) works of art (unless by or of the debtor, or any relative of the debtor);
(ii) electronic entertainment equipment with a fair market value of more than $ 600 in the aggregate (except 1 television, 1 radio, and 1 VCR);
(iii) items acquired as antiques with a fair market value of more than $ 600 in the aggregate;
(iv) jewelry with a fair market value of more than $ 600 in the aggregate (except wedding rings); and
(v) a computer (except as otherwise provided for in this section), motor vehicle (including a tractor or lawn tractor), boat, or a motorized recreational device, conveyance, vehicle, watercraft, or aircraft.
(g) Notwithstanding sections 550 and 551 of this title [11 USCS §§ 550 and 551], the debtor may exempt under subsection (b) of this section property that the trustee recovers under section 510(c)(2), 542, 543, 550, 551, or 553 of this title [11 USCS § 510(c)(2), 542, 543, 550, 551, or 553], to the extent that the debtor could have exempted such property under subsection (b) of this section if such property had not been transferred, if--
(1)
(A) such transfer was not a voluntary transfer of such property by the debtor; and
(B) the debtor did not conceal such property; or
(2) The debtor could have avoided such transfer under subsection (f)(1)(B) of this section.
(h) The debtor may avoid a transfer of property of the debtor or recover a setoff to the extent that the debtor could have exempted such property under subsection (g)(1) of this section if the trustee had avoided such transfer, if--
(1) such transfer is avoidable by the trustee under section 544, 545, 547, 548, 549, or 724(a) of this title [11 USCS § 544, 545, 547, 548, 549, or 724(a)] or recoverable by the trustee under section 553 of this title [11 USCS § 553]; and
(2) the trustee does not attempt to avoid such transfer.
(i) (1) If the debtor avoids a transfer or recovers a setoff under subsection (f) or (h) of this section, the debtor may recover in the manner prescribed by, and subject to the limitations of, section 550 of this title [11 USCS § 550], the same as if the trustee had avoided such transfer, and may exempt any property so recovered under subsection (b) of this section.
(2) Notwithstanding section 551 of this title [11 USCS § 551], a transfer avoided under section 544, 545, 547, 548, 549, or 724(a) of this title [11 USCS § 544, 545, 547, 548, 549, or 724(a)], under subsection (f) or (h) of this section, or property recovered under section 553 of this title [11 USCS § 553], may be preserved for the benefit of the debtor to the extent that the debtor may exempt such property under subsection (g) of this section or paragraph (1) of this subsection.
(j) Notwithstanding subsections (g) and (i) of this section, the debtor may exempt a particular kind of property under subsections (g) and (i) of this section only to the extent that the debtor has exempted less property in value of such kind than that to which the debtor is entitled under subsection (b) of this section.
(k) Property that the debtor exempts under this section is not liable for payment of any administrative expense except--
(1) the aliquot share of the costs and expenses of avoiding a transfer of property that the debtor exempts under subsection (g) of this section, or of recovery of such property, that is attributable to the value of the portion of such property exempted in relation to the value of the property recovered; and
(2) any costs and expenses of avoiding a transfer under subsection (f) or (h) of this section, or of recovery of property under subsection (i)(1) of this section, that the debtor has not paid.
(l) The debtor shall file a list of property that the debtor claims as exempt under subsection (b) of this section. If the debtor does not file such a list, a dependent of the debtor may file such a list, or may claim property as exempt from property of the estate on behalf of the debtor. Unless a party in interest objects, the property claimed as exempt on such list is exempt.
(m) Subject to the limitation in subsection (b), this section shall apply separately with respect to each debtor in a joint case.
(n) For assets in individual retirement accounts described in section 408 or 408A of the Internal Revenue Code of 1986 [26 USCS § 408 or 408A], other than a simplified employee pension under section 408(k) of such Code [26 USCS § 408(k)] or a simple retirement account under section 408(p) of such Code [26 USCS § 408(p)], the aggregate value of such assets exempted under this section, without regard to amounts attributable to rollover contributions under section 402(c), 402(e)(6), 403(a)(4), 403(a)(5), and 403(b)(8) of the Internal Revenue Code of 1986 [26 USCS § 402(c), 402(e)(6), 403(a)(4), 403(a)(5), and 403(b)(8)], and earnings thereon, shall not exceed $ 1,171,650 in a case filed by a debtor who is an individual, except that such amount may be increased if the interests of justice so require.
(o) For purposes of subsection (b)(3)(A), and notwithstanding subsection (a), the value of an interest in--
(1) real or personal property that the debtor or a dependent of the debtor uses as a residence;
(2) a cooperative that owns property that the debtor or a dependent of the debtor uses as a residence;
(3) a burial plot for the debtor or a dependent of the debtor; or
(4) real or personal property that the debtor or a dependent of the debtor claims as a homestead;
shall be reduced to the extent that such value is attributable to any portion of any property that the debtor disposed of in the 10-year period ending on the date of the filing of the petition with the intent to hinder, delay, or defraud a creditor and that the debtor could not exempt, or that portion that the debtor could not exempt, under subsection (b), if on such date the debtor had held the property so disposed of.
(p) (1) Except as provided in paragraph (2) of this subsection and sections 544 and 548 [11 USCS §§ 544 and 548], as a result of electing under subsection (b)(3)(A) to exempt property under State or local law, a debtor may not exempt any amount of interest that was acquired by the debtor during the 1215-day period preceding the date of the filing of the petition that exceeds in the aggregate $ 146,450 in value in--
(A) real or personal property that the debtor or a dependent of the debtor uses as a residence;
(B) a cooperative that owns property that the debtor or a dependent of the debtor uses as a residence;
(C) a burial plot for the debtor or a dependent of the debtor; or
(D) real or personal property that the debtor or dependent of the debtor claims as a homestead.
(2) (A) The limitation under paragraph (1) shall not apply to an exemption claimed under subsection (b)(3)(A) by a family farmer for the principal residence of such farmer.
(B) For purposes of paragraph (1), any amount of such interest does not include any interest transferred from a debtor's previous principal residence (which was acquired prior to the beginning of such 1215-day period) into the debtor's current principal residence, if the debtor's previous and current residences are located in the same State.
(q) (1) As a result of electing under subsection (b)(3)(A) to exempt property under State or local law, a debtor may not exempt any amount of an interest in property described in subparagraphs (A), (B), (C), and (D) of subsection (p)(1) which exceeds in the aggregate $ 146,450 if--
(A) the court determines, after notice and a hearing, that the debtor has been convicted of a felony (as defined in section 3156 of title 18 [18 USCS § 3156]), which under the circumstances, demonstrates that the filing of the case was an abuse of the provisions of this title; or
(B) the debtor owes a debt arising from--
(i) any violation of the Federal securities laws (as defined in section 3(a)(47) of the Securities Exchange Act of 1934 [15 USCS § 78c(a)(47)]), any State securities laws, or any regulation or order issued under Federal securities laws or State securities laws;
(ii) fraud, deceit, or manipulation in a fiduciary capacity or in connection with the purchase or sale of any security registered under section 12 or 15(d) of the Securities Exchange Act of 1934 [15 USCS § 78l or 78o(d)] or under section 6 of the Securities Act of 1933 [15 USCS § 77f];
(iii) any civil remedy under section 1964 of title 18; or
(iv) any criminal act, intentional tort, or willful or reckless misconduct that caused serious physical injury or death to another individual in the preceding 5 years.
(2) Paragraph (1) shall not apply to the extent the amount of an interest in property described in subparagraphs (A), (B), (C), and (D) of subsection (p)(1) is reasonably necessary for the support of the debtor and any dependent of the debtor.
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