Bankruptcy exemptions play an important role in bankruptcy. In Chapter 7 bankruptcy, exemptions determine what property you keep and what property you have to give up. In Chapter 13 bankruptcy, exemptions are used in calculating the minimum amount you must repay to unsecured creditors through your repayment plan. Read the articles below to understand exemptions and how they work.
Each state has a set of exemptions that you can use in bankruptcy (some states allow you to use the federal exemptions instead). It's important to find out what your state exemptions are. You can do that by clicking on the Bankruptcy Exemptions in Each State link below.