1. Chapter Nine. Exemptions After reading this chapter, you will be able to: Define of exemptions Understand the concept of exemptions and their importance to individual debtors in Bankruptcy proceedings Describe the Code concept of the “opt out” provision Understand which exemptions to select, when a choice is available Identify how exemptions are claimed by individual debtors Identify specific exemptions Describe the homestead exemption and how a homestead is claimed in many jurisdictions Describe how a claim of exemption is opposed by the trustee or a creditor

2. Fresh Start “Fresh Start” is the phrase most frequently used colloquially to describe the basic elements of debtor relief: Discharge Exemptions Automatic Stay

3. Exempt Exemptions are statutorily defined property that an individual debtor may protect from administration by a bankruptcy estate. Exempt property is not available for liquidation to pay a dividend to creditors; a debtor may keep exempt property. Exemptions are a primary element of debtor relief.

4. Homestead Exemption Homestead is an exemption permitted in an individual debtor’s place of residence. Section 522(d)(1) of the Bankruptcy Code provides a federal homestead exemption. State law also provides homestead exemptions.

5. Summary of Federal Exemptions Residence of debtor or dependent Motor vehicle Household goods, furniture, and wearing apparel Personal jewelry Any property catch all Tools of trade Unmatured or term insurance Cash value of insurance Professionally prescribed health aids Social Security, welfare, veterans benefits, alimony, disability, or unemployment Certain personal injury claims Retirement accounts

6. Debt Immune from a Debtor’s Claim of Exemptions These types of debt include: Consensual liens Tax liens Domestic support obligation Student financial aid obligations that were fraudulently obtained

7. Non-Purchase Money Security Interest A security interest in collateral where the purpose of the loan is other than to purchase the collateral