By default, BankruptcyPRO® does not automatically assign exemptions. The software is designed for you to assign the default exemptions. After default exemptions for an asset category are assigned, BankruptcyPRO automatically applies those default exemptions when adding a new asset in that category.
We make every effort to keep the exemptions current, but you should (as usual) verify them. If you are in doubt as to which exemption to use on a particular asset, from inside a case, you can go to File → Print → Exemption Codes. Next click on the Printer icon to print your state exemptions. If Federal exemptions are available to you, they will print at the same time.
When we update the state exemptions, we remove the default settings for that set. You will need to reset them one time when you get an update to your exemptions in BankruptcyPRO. This process is described below.
Selecting the correct state exemptions
BankruptcyPRO loads the appropriate set of exemptions based on the jurisdiction selected for a case. If you need to use exemptions from another state based on your client’s circumstances, you can do that easily by clicking on the J button and choosing the state for the exemptions you need to use. You will not change the jurisdiction in the case to use the other exemption set, just select which exemptions to use for this particular filing.
The exemptions tab
Exemptions are assigned on the exemptions tab in the Assets dialog (the pink A button). Add or select an existing asset in either Real Property or Personal Property and then click on the Exemptions tab. Please note that the Federal exemptions section will only appear in states where Federal exemptions are allowed. Keep in mind that if your case is not an individual or joint debtor case (i.e., a corporation or partnership), the Exemptions Tab will not appear.
Setting default exemptions
If default exemptions are not set for an asset category, you will notice at the top of the window on the Exemptions tab a notation saying Default Not Set and a dimmed out Use Default checkbox. You may then select different exemptions as necessary by simply clicking on Add button or pressing the Insert key in the appropriate section (State or Federal) to add exemption(s) for the asset. Select your Exemption from the list by clicking or using the Down Arrow to highlight the exemption and pressing the Enter key. The list shows the Statute and a plain English description of the exemption. You can apply a secondary and a tertiary exemption to an asset if needed. Clicking on the Make Default button automatically checks the Use Default checkbox. You will now see Default in Use underneath the checkbox. Again, we recommend that you DO NOT set a Wildcard (Federal) as a default exemption.
Changing the default
If you wish to change the default exemption for a category uncheck the Use Default checkbox. Click Remove Default to reset that selection. If you wish to use a different exemption from your default for a particular asset, uncheck Use Default and select the exemption(s) you wish to use. If you wish to reset your default selection, once you have selected the new statutes, click on the Make Default button.