The bankruptcy laws are not designed to punish people by taking away all of their property. Rather, the Bankruptcy laws are designed to give honest but unfortunate debtors a fresh start . The reasonable and necessary things that people own, such as a home, an automobile, the typical household goods and furnishings in a normal home, clothing and many other personal items are exempt and will not be taken away. Everyone needs housing, food, transportation and other normal necessities, and it is rare that a bankruptcy debtor loses any property. However, not all property is exempt.
Some property is non-exempt.
Regardless of the kind of Bankruptcy that you file, you are required to claim certain exemptions on your property. In most cases the laws of the state of Texas and the Bankruptcy Code determine what exemptions you may claim. The Texas exemptions are called the state exemptions. The federal exemptions, under the Bankruptcy Code are called the federal exemptions. It depends upon which state you live in as to which exemptions you may elect.