What are exempt assets?

Remember that in bankruptcy a consumer must list all of his or her assets. Fortunately, some of these assets are exempt from the process, meaning that the consumer gets to keep those assets and not fear that they will fall into the hands of creditors. Some of these exempt assets include: $20,200 in the consumer’s home, jewelry with a value up to $1,325, $2,025 in books or tools of a consumer’s trade, up to nearly $10,000 in household appliances and items, though there is a maximum of $585 per item, and money in an Individual Retirement Account (IRA). For a full listing of exempt assets, seellU.S.C. §522.

Exempt assets mean that unsecured creditors cannot touch them. However, secured creditors who have a security interest may still be able to recover.