Bankruptcy Exemption

Bankruptcy exemption refers to specific assets or property that a debtor is allowed to keep during bankruptcy proceedings, meaning these items are protected from being sold to pay creditors. These exemptions vary by jurisdiction and can include essentials like a family home, personal belongings, retirement accounts, and some tools or equipment needed for work. The purpose is to ensure individuals can maintain basic stability and a fresh start after bankruptcy while still paying off creditors with the remaining assets.