Significance

• Exempt property usually has limited resale value and consists of the items necessary for the person filing bankruptcy to continue to work and live.
  
  

Types

• Examples of exempt property include: medically prescribed health aids; trade or professional items such as tools, uniforms, books and instruments; money received from insurance settlements, court or arbitration judgments; household furnishings, appliances, clothing necessary for daily life and cash or property up to a certain amount.
  
  

Features

• The bankruptcy special exemptions vary by state. Some states offer the option of choosing between the federal or the state exemptions when filing for bankruptcy.
  
  

Considerations

• The jurisdictions that allow residents to use the federal exemptions in bankruptcy cases are: Arkansas, Connecticut, Washington, D.C., Hawaii, Massachusetts, Michigan, Minnesota, New Jersey, New Mexico, Pennsylvania, Rhode Island, South Carolina, Texas, Vermont, Washington and Wisconsin.
  
  People filing for bankruptcy in those states may be able to keep a higher dollar amount of property by using the federal exemptions. Some states offer a "wild card" exemption of a certain dollar amount that can be applied to various types of property such as automobiles.