Exemptions play an important role in both Chapter 7 and Chapter 13 bankruptcy.

If property is exempt, it means it's beyond the reach of the bankruptcy trustee in Chapter 7 bankruptcy. For that reason, exemptions help determine which property you get to keep and which property you must give up in Chapter 7.

In Chapter 13 bankruptcy, exemptions help determine how much you'll have to pay to your unsecured creditors.  If most of your property is exempt, you are more likely to be able to afford a confirmable Chapter 13 plan. If you have lots of nonexempt property, the minimum payment to your unsecured creditors might knock you out of Chapter 13. 

Below you'll find articles on how exemptions work in Chapter 7 and Chapter 13 bankruptcy, the difference between federal and state exemptions, when you can use each type (federal or state), and how particular types of exemptions can help you keep property (like your home or car).