What Is Exempt Property?

The Bankruptcy laws allow the debtor to keep a certain amount of property so that the debtor can begin his or her financial life again with the basics needed to get started. For example, in Colorado, debtors are allowed to keep $3,000 worth of household items such as furniture, appliances, etc. The exemption is $6,000 for a married couple who file jointly for Bankruptcy. Even though bankruptcy is a Federal Law, the exemptions are set by state law here in Colorado. If you have not been living in Colorado for the two years prior to your case filing date, then another state’s law( where you were living, usually) or the Federal exemptions must be used.