What if I'm over the limit on one exemption, can I still file for Chapter 7?
Yes. If you are over on one exemption you can still file for Chapter 7, but the property must be
liquidated (or payment of the excess must be paid to the trustee). This can be done in either one of two
ways. Either the property is liquidated before bankruptcy, with the proceeds being transferred into
exempt property that you are allowed to keep, or the property is liquidated after filing for bankruptcy,
with the proceeds being transferred to your creditors. Property that is liquidated, or transferred, before
bankruptcy is carefully monitored by the Trustee. Certain
transactions that are deemed fraudulent or preferential can be avoided by the Trustee. "Exemption
Planning" is allowed within certain limits, however. If you are over on an exemption, you should certainly
consult an attorney to help you plan your bankruptcy filing accordingly.