federal exemptions

Federal exemptions are provisions in bankruptcy law that allow individuals to keep certain property, like a home, vehicle, or savings, up to a specific value, even when they declare bankruptcy. These exemptions help ensure that essential assets remain protected for future needs. The rules for exemptions can vary by state, as some states have their own, but federal exemptions set standard limits. By using exemptions, debtors can satisfy creditors while preserving key property necessary for financial stability after bankruptcy.