The federal Bankruptcy Code allows each individual in bankruptcy to protect certain property while still consolidating and/or discharging their debts. This is accomplished by using protections that are set forth in federal law or under state law. Typically, property which can be kept and protected while in a bankruptcy includes your homestead, your vehicles, household furnishings and personal effects, jewelry, health aids, tools of the trade, life insurance, personal injury claims, retirement accounts and packages, bank accounts to a certain amount, and other types of miscellaneous property. The typical individual filing for bankruptcy is able to protect ALL of their property by using these protections.
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