Homestead Exemption

• If you're a homeowner, the homestead exemption allows you to exempt a certain amount of the equity value in your home. As of 2010, the federal homestead exemption is $21,625. If your equity value is $10,800 or less, you may apply the remaining $10,825 as an exemption against any other property.
  
  

Motor Vehicles

• The federal government also allows you to exempt a certain amount of value in a motor vehicle. As of 2010, the exemption limit is $3,450. You may use this exemption if you hold the title to your vehicle or if you are making payments and plan to reaffirm the debt in your bankruptcy petition.
  
  

Household Items

• Household items are exempt under federal law. Examples of exempt household goods include furniture, bedding, appliances, pots and pans, dishes, utensils, books, artwork, clothing, toys and pets. You may exempt up to $550 per item, up to a total limit of $11,525.
  
  

Jewelry

• If you have an extensive jewelry collection, you may only be allowed to keep a small portion of it in a Chapter 7 bankruptcy case. As of 2010, the exemption for jewelry is $1,450. This includes wedding rings, family heirlooms, fine jewelry and costume jewelry. You may apply the unused portion of your homestead exemption or the wild card exemption to jewelry.
  
  

Tools of the Trade

• Tools of the trade refers to any equipment, books or tools a debtor may use to earn a living. For example, painters may claim paintbrushes, sprayers or clothing as part of their tools of the trade. If you own a vehicle that is used solely for your work, you may be able to include this under the tools of the trade exemption. As of 2010, the exemption limit is $2,175.
  
  

Retirement Accounts

• Retirement accounts are also protected under the federal bankruptcy code. Currently, funds held in an Individual Retirement Account are exempt up to $1,171,650. Funds held in an education retirement account are also exempt as are employee contributions to qualified pension and retirement plans.
  
  

Other Exemptions

• There are several miscellaneous exemptions of which you may take advantage. If you have a life insurance policy, you may exempt up to $11,525 of its value. If you received a judgment through a personal injury settlement, you are allowed to exempt up to $21,625 of the total amount recovered. There is also a wild card exemption of $1,450 that may be applied to the property of your choice.