If you are contemplating filing bankruptcy, you may be wondering, "Will I lose my property if I file?" This is a perfectly normal question and one that comes up in the minds of virtually every debtor who files bankruptcy.

Depending on what state you live in, you will either be required to use your state's exemptions, or you may be able to choose between the state exemptions and the federal bankruptcy exemptions, however, you cannot mix and match.

The state and federal bankruptcy exemptions allow bankruptcy filers to keep certain property when they file a Chapter 7 and they are used to determine how much is paid back to creditors in a Chapter 13 repayment plan.

Can I use the federal bankruptcy exemptions?

It depends on where you live. Each state has established its own bankruptcy exemptions which differ from state-to-state. Unlike the state exemptions, which vary, the federal bankruptcy exemptions are uniform and do not change because of where people live.

Generally, most states require that bankruptcy filers use the state's exemptions, but in some states, the debtors can choose between the state and federal exemptions. But debtors have to choose between the two, there's no mixing and matching.

Here are some of the states that allow debtors to choose between the state and federal exemptions:

• Alaska
• Connecticut
• Hawaii
• Massachusetts
• Michigan
• New Jersey
• New Mexico
• New York
• Texas
• Washington
• Wisconsin

What types of property does the federal exemptions protect? There are exemptions for the equity in your primary residence, your motor vehicle, jewelry, household furnishings, tools of the trade, health aids, life insurance policies, spousal support, and child support etc.

There are also exemptions for personal injury and wrongful death settlements and retirement accounts.

For more detailed information about your state's bankruptcy exemption laws, contact a bankruptcy lawyer in our directory!