Cohen v. de la Cruz

Cohen v. de la Cruz (1986) was a court case involving a debtor’s ability to claim certain exemptions on property they wish to keep when they file for bankruptcy. The case clarified that federal bankruptcy law allows debtors to exempt (protect) specific assets, like a portion of their wages, from creditors. However, the law also outlines limits to these exemptions. The Supreme Court held that if a debtor properly claims an exemption, the debtor can keep that asset, and the exemption should be applied according to the law’s specific rules, even if it means the debtor retains some property that creditors might otherwise claim.