A common misconception about filing for bankruptcy is that it results in loss of all of your personal assets. In reality, some of your assets are exempt under bankruptcy protection laws.
Bankruptcy exemptions vary by state, so you need to meet with a Schaumburg bankruptcy lawyer to accurately determine how your assets will be affected. In a Chapter 7 petition, identifying your exemptions helps determine what property you are able to keep. If you file for Chapter 13 bankruptcy, identifying exemptions helps you calculate the amount you will need to pay back your creditors. Some states require the debtor to use state exemptions, while other states allow the debtor to use its exemptions or the federal exemption list. State exemptions often match federal exemptions, but the amounts may vary by state, with some states offering more generous exemption amounts.