Many people struggling with debt fear the bankruptcy process because they worry that they’ll lose everything, their home, cars, personal belongings, etc., to creditors in order to satisfy their outstanding debts.Not all of a debtor’s assets are collectible by creditors in bankruptcy.The U.S. Bankruptcy Code recognizes that a debtor needs to retain certain assets in order to rebuild their credit and a more secure financial future.As a result, there are a series of exemptions, both under state and federal law that may exempt for collection many of a debtor’s assets and items of property, including personal belongings, often a vehicle or even their home.This list of exemptions is not all-inclusive, but it is intended to help a debtor achieve a fresh start by allowing them to rebuild with certain assets and personal property so they can find financial success.
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