Under Exemptions in the Bankruptcy Code, a Debtor May Keep

question 98

True/False

Under exemptions in the Bankruptcy Code, a debtor may keep both $20,200 in equity in a residence and $3,225 in equity in a motor vehicle.

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Definitions:

Current Tax Expense

The amount of income taxes a company is expected to pay in the current year, reflecting its taxable earnings.

Pre-Tax Book Income

The income of a company before taxes are applied, calculated according to accounting standards.

Tax Depreciation

A tax deduction that allows a company to recover the cost of property or assets it has purchased by reducing taxable income.

Book Depreciation

Book depreciation is the portion of the cost of a fixed asset that is written off annually on the financial statements of a company over the useful life of that asset, according to accounting standards.