Is anything exempt from repossession during bankruptcy?

Yes, anything that falls under the bankruptcy exemptions cannot be repossessed. Specific answers depend on which state the debtor resides in. For example, California has a two tiered exemption system with different benefits in each one.

Understanding Exemptions

Exemptions are a set of statutes that provide a maximum amount for exemptions from bankruptcy. Some will pertain to specific items; others will group sets of property under one description. There is usually a wild card exemption to cover any items that weren't covered by the statutes.

There are also what are known as federal exemptions, which can only be used in some states. Sometimes the federal version provides a more favorable ceiling for property. This is a 'one or the other' situation as only one set of exemptions can be used. There can be no cherry picking from one or the other.

Hiring Legal Help

Exemptions can be a tricky part of bankruptcy. On one hand, the debtor would like to be able to keep certain possessions. On the other, care must be taken to avoid any questions arising from the trustee. Hiring an experienced bankruptcy lawyer avoids this situation. The lawyer will know precisely how to use the exemptions to the debtor's favor without sending up a red flag.