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Alaska Bankruptcy Exemptions
The Alaska bankruptcy exemptions chart, see below, details the property you can exempt or protect from creditors when you file bankruptcy in Alaska. You may exempt any property that falls into one of the exemptions categories below, up to the dollar amount listed. You will be able to kept this exempted property after you file bankruptcy. Please note that there are certain debts which you will not be able to erase in bankruptcy. (see Non-dischargeable Debts)
An exemption limit applies to any equity you have in the property. Equity is the difference between the value of the property and what is owed on the property. For example, a car valued at $5000 with a loan of $4500 has an equity value of only $500.
If the property is secured by a loan, such as a car or home, and you are current on the payments, the equity is covered by your exemptions, and you elect to keep making payments on the loan you generally can keep this property through the bankruptcy. If all the equity is not covered by your exemptions the trustee may elect to liquidate this asset and distribute the assets. Generally, in this case, you would be entitled to the value of your exemption in the asset as a cash payment.
Bankruptcy law allows married couples filing jointly to each claim a full set of exemptions, unless otherwise noted.
To keep non-exempt property, a debtor must generally pay the trustee the value of the non-exempt property.
When you file bankruptcy in Alaska you may also use certain federal exemptions in addition to your Alaska exemptions. |
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| ASSET |
EXEMPTION DESCRIPTION |
| HOMESTEAD |
$54,000 in principal residence, whether single
or multiple owners, but subject
to certain liens; proceeds also exempt located in Alaska for 6 months. |
| INSURANCE |
Disability benefits
Fraternal benefit society benefits
Insurance proceeds for personal injury, to extent wages exempt (bankruptcy
judge may authorize a greater amount
Insurance proceeds for wrongful death, to extent wages are exempt.
Life insurance annuity or contract loan value to $10,000
Life insurance proceeds if beneficiary is insured's spouse or dependent,
to extent wages exempt
Medical, surgical or hospital benefits |
| MISC. |
Property of business partnership
Alimony, to the extent wages are exempt
Child support payments made by a collection agency
Liquor licenses
Permits for limited entry into Alaska Fisheries |
| PENSIONS |
Judicial employees (only benefits building
up)
Teachers (only benefits building up)
ERISA qualified benefits deposited more than 120 days before filing bankruptcy
Public employees (only benefits building up)
Other pensions to extent wages exempt (only payments being received) |
| PERSONAL PROPERTY |
Books, musical instruments, clothing, family
portraits, household goods & heirlooms to $3,000 total
Building materials
Burial Plot
Health Aids needed
Jewelry to $1000
Motor vehicle to $3,000; vehicle's market value can't exceed $20,000
Personal injury recoveries, to extent wages exempt
Pets to $1,000
Proceeds for lost, damaged or destroyed exempt property
Wrongful death recoveries to extent wages exempt |
| PUBLIC BENEFITS |
Adult assistance to the elderly, blind, disabled
AFDC
Alaska longevity bonus
Crime victims' compensation
Federally exempt public benefits paid or due
General relief assistance
45% of permanent fund dividends
Tuition credits under an advance college tuition payment contract
Unemployment compensation
Worker's Compensation |
| TOOLS OF TRADE |
Implements, books & tools of trade to $2,800 |
| WAGES |
Weekly net earnings to $350; for sole wage
earner in a household, $550; if you don't receive weekly, monthly or
semi-monthly pay, can claim $1400 in cash or liquid assets paid in any
month; for sole wage earner in household, $2,200 |
| WILDCARD |
NONE |
For more information on filing bankruptcy in Alaska explore Alaska Bankruptcy Law.
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