Each state has laws that determine which items of property are exempt in bankruptcy, and in what amounts. These items cannot be seized by creditors or by the bankruptcy trustee.

Many states exempt health aids, "personal effects" (things such as electric shavers, hair dryers, and toothbrushes), ordinary household furniture and clothing without regard to their value.

Other kinds of property are exempt up to a limit. For example, in many states, furniture or a car is exempt to several thousands of dollars. This exemption limit means that any equity in the property above the limit isn't exempt. (Equity is the market value minus how much you still owe.)

Typically, the following items are exempt:

• part of the equity in motor vehicles (the amount varies from state to state)
• reasonably necessary clothing (no fur coats)
• reasonably necessary household goods and furnishings
• household appliances
• jewelry, to a few hundred dollars
• personal effects
• life insurance (cash or loan value or proceeds), (the amount varies from state to state)
• part of the equity in a residence (the amount varies from state to state)
• pensions
• public benefits
• tools of a trade or profession, to a certain value, and
• unpaid but earned wages.