Exemptions are used to protect real and personal property of a debtor from being seized and sold by either a creditor or the bankruptcy trustee to be liquidated to pay debts. Determination of what exemptions are available will vary from state to state.
All property is subject to taxation, unless specifically exempted under state law. Exemptions exist for nonprofit organizations, senior citizens, heads of household (personal property only), historical property and the remodel exemption.
Property that may be kept by you and not included in the estate for sale. Exemptions are contained in both state and federal law and you will have to choose whether you use the federal or state exemptions. Exemptions include equity in your home, car, and other personal items. Dollar figures that can be claimed for each item vary by state and federal law as does the total in exemptions that can be claimed.