personal property exemption

Personal property exemption refers to the legal amount or type of personal belongings that you are allowed to keep without having to use them to pay off debts if you face bankruptcy or debt collection. It includes items like clothing, household furnishings, vehicles, and tools necessary for your work, up to certain values set by law. The exemption aims to protect essential possessions so you can maintain a basic standard of living while settling debts. The specific exemptions vary by jurisdiction, so laws determine what can be retained.