Bankruptcy exemptions are rules that exempt certain types and amounts of property from being sold or used to satisfy the claims of debtors in your bankruptcy case. Each state has a set of bankruptcy exemptions that you can use to protect your property while going through bankruptcy.

Federal law also provides a set of bankruptcy exemptions. Your state’s law will determine whether you can choose the federal bankruptcy exemptions, or if you must use your state’s bankruptcy exemptions. But if your state’s law allows you to choose between the two sets of bankruptcy exemptions, you must choose one or the other, and cannot choose exemptions from both your state and the federal exemptions.

In North Dakota, bankruptcy exemptions play a crucial role in protecting certain assets of individuals filing for bankruptcy. The state has its own set of bankruptcy exemptions that residents are required to use, as North Dakota does not allow debtors to choose the federal bankruptcy exemptions. These exemptions include specific amounts for real property, personal property, insurance, pensions, public benefits, tools of trade, wages, and miscellaneous categories. For example, North Dakota's homestead exemption allows individuals to exempt up to $100,000 of equity in their home or residential property. It's important for debtors to review the North Dakota Century Code (specifically Chapter 28-22) to understand the full scope of exemptions available to them. An attorney can provide guidance on how to best apply these exemptions to protect assets during the bankruptcy process.