Bankruptcy is a common occurrence in the United States as thousands of individuals and businesses each year find themselves in an impossible financial situation that they just cannot get out of without some sort of legal help. In general, bankruptcy can be defined as the legal inability to pay debts or the state of having been legally declared bankrupt. However, bankruptcy isn’t cut and dry, and it’s not for everyone. Keep in mind that there are several different types of bankruptcy including chapter 7, chapter 9, chapter 11, chapter 12, chapter 13, and chapter 15.

There are just as many bankruptcy laws, codes and sections as there are types of bankruptcy cases. Bankruptcy exemption is one aspect of bankruptcy that allows the debtor to hold on to assets such property a car, home, land, and many other assets by claiming them as "exempt" under federal and state exemption laws. In a nutshell, the debtor can legally keep property that has been claimed as exempt (or that they purchase back from the Trustee). Currently there are 13 states that follow federal bankruptcy exemptions including the states of Arkansas, Connecticut, the District of Columbia, Hawaii, Massachusetts, Michigan, Minnesota, New Jersey, New Mexico, Pennsylvania, Rhode Island, South Carolina, Texas, Vermont, Washington, and Wisconsin. While bankruptcy exemption may sound simple enough, bankruptcy exemption laws are anything but, so it’s best to consult with a bankruptcy lawyer.

A bankruptcy lawyer will have the knowledge and skills needed to help you navigate the maze of U.S. titles, sections, and codes relative to bankruptcy laws and bankruptcy exemptions. Once your bankruptcy lawyer has determined which assets are exempt from bankruptcy, they will oversee your case including filing, administrative tasks, etc. If you decide to move forward with your bankruptcy, a bankruptcy lawyer will explain the risks to you and your financial future, as well as offer other possible alternatives to bankruptcy. Keep in mind that a bankruptcy lawyer will also (or should) have extensive knowledge about debt management.

If you are ready to contact a bankruptcy lawyer to explore the possibility of bankruptcy, get a better understanding of bankruptcy exemptions or even to explore other debt relief options, visit the American Bar Association ( ABA ) website. The American Bar Association website features a convenient lawyer locator function which allows the user to search bankruptcy lawyer profiles in your local area. Access to the site and profiles is free.

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