Exemptions in Bankruptcy

Exemptions in bankruptcy refer to certain assets or properties that individuals can keep even while discharging debts. These exemptions protect essential belongings, like a home, vehicle, or personal items, from being sold to pay creditors. Each state has its own set of laws determining what can be exempted, and individuals can often choose between federal and state exemption lists. The purpose is to give debtors a fresh start while ensuring they retain enough basic necessities for living and working. Understanding these exemptions is crucial for anyone considering bankruptcy.