Bankruptcy exemptions are rules that allow you to keep some of your assets when filing bankruptcy. There are state exemptions and federal exemptions. In some states you may elect to use either state or federal exemptions, but in most states you are allowed only to use your state’s list.
Common bankruptcy exemptions that are allowed in most states include primary residence (up to a certain amount of equity in the house), appliances, personal clothing, personal automobile, business vehicle, tools for work, and retirement funds. Each state will vary.