---
title: "Exempt Property"
type: Legal Term
source: https://casebriefly.com/legal-terms/exempt-property
---

# Exempt Property

Exempt property refers to assets that a debtor may retain free from the claims of creditors and the reach of the bankruptcy trustee, ensuring the debtor is not left destitute after bankruptcy. Exemptions are governed by 11 U.S.C. section 522, which provides a set of federal exemptions while also permitting states to opt out and require debtors to use state-law exemptions instead. Common categories include a homestead exemption protecting equity in the debtor's residence, exemptions for personal property, tools of the trade, retirement accounts, and public benefits. The scope of available exemptions varies dramatically by jurisdiction, making domicile a critical strategic consideration in bankruptcy planning.

## Related Terms

- chapter-7-liquidation
- discharge
- secured-creditor
- chapter-13-adjustment

## Related Cases

- dartmouth-college-v-woodward

## Example

A debtor in Texas was able to exempt her entire $500,000 homestead from the bankruptcy estate because Texas has an unlimited homestead exemption, while a debtor in a different state might only protect $25,000 of home equity.

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Source: [Exempt Property — CaseBriefly](https://casebriefly.com/legal-terms/exempt-property)