Filing bankruptcy can be a nerve wracking experience. This is especially true when people are under the impression that their court-appointed bankruptcy trustee has the power to attach and sell all of their assets. This is, however, not the case, and each state has identified certain assets that will be protected in bankruptcy proceedings. This is as long as the relevant exemption is claimed on the debtor’s bankruptcy petition and schedules.
A bankruptcy attorney usually assists a debtor with the completion and filing of his petition and schedules and is the one responsible for claiming the state-provided exemptions. Exactly which exemptions are available will depend on which state the debtor is living in, but all states offer exemptions in the same basic categories including the homestead exemptions and the tools-of-trade exemptions.
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