| Personal bankruptcy is commenced by an | | | | allowed to "opt-out" of the federal exemptions |
| individual filing Chapter 7, 11, 12 or 13. The most | | | | and provide their own lists. Exemptions can thus |
| common is Chapter 7. The debtor is allowed to | | | | vary widely from state to state. |
| exempt certain property from liquidation by the | | | | The "automatic stay" goes into effect |
| trustee. The list of exempt property includes | | | | immediately upon the filing. This stay prohibits any |
| homesteads, household furniture and furnishings, | | | | act to collect money or take property from the |
| jewelry, clothing, interests in an automobile, tools | | | | debtor. It stops wage garnishments, foreclosures, |
| of the trade, pensions, insurance policies, a | | | | repossessions, and the like. The stay usually |
| "wild-card" or "grubstake" exemption of | | | | remains in effect throughout the case. |
| $15,000.00, and other assets. Individual states are | | | | |