What Are Bankruptcy Exemptions?
When you hit a hard spot financially, you might be interested in filing for bankruptcy. This is a decision that takes a lot of consideration, as it stays on your record for years and can affect whether or not you get loans or other financial decisions you could make in the future. One of the biggest concerns that many people have when they want to file for bankruptcy is that they lose all of their major possessions.
However, that’s not true. There are exemptions in place to ensure that debtors maintain control of some things in their lives. The property that is protected from bankruptcy is what’s necessary for living, which also ensures that debtors will still be able to live their lives during and after filing.
Some states follow only federal regulations, but in Maryland there are both state and federal exemptions when it comes to bankruptcy.