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Why is some property considered exempt from Chapter 7 bankruptcy proceedings? Do you think this is...

Why is some property considered exempt from Chapter 7 bankruptcy proceedings? Do you think this is necessary? Do you think it is fair?

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Answer #1

Some properties like cars under certain value, clothing, jewellery, pension fund, etc. are exempt because they are considered to be basic necessities. Certain items are exempt so that it allows the person to recover and live a life.
Yes, it is necessary otherwise the debtor will lose his entire life, property and won't be able to lead a normal life. This will put the debtor under immense financial duress.

I think it is fair as all luxury items are non-exempt. However necessary items are non-exempt giving chance to the debtor to stand on his feet again.

Best of Luck. God Bless

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