Browse terms
Property you keep
Exemption
Property the Bankruptcy Code or state law lets an individual debtor keep from unsecured creditors. 1
Talk to a lawyerHow it works
Bankruptcy law lets individuals protect certain property. Depending on state law, a filer may be able to choose between the federal exemption list and state exemptions, or may be limited to state exemptions. 2
In Chapter 7, a trustee may sell property that is not exempt and pay the proceeds to creditors. 3
Common questions
How much can I keep?
It depends on the exemptions that apply in your state. As one example, the federal homestead exemption is $31,575 for cases filed on or after April 1, 2025. 2
Sources
Want to know how this applies to you?
A bankruptcy lawyer in your state can look at your situation with you.
Connect to a bankruptcy lawyer