Common bankruptcy exemptions are a result of bankruptcy protection laws that state a debtor can retain assets worth a certain amount of money. This is great news for a person filing Chapter 7. They are not faced with losing everything. Chapter 7 uses assets to pay creditors but laws allow exemptions which let the debtor get a new start in life. The Homestead Exemption protects the equity a debtor has in his home. A Personal Property Exemption protects personal items such as clothing, cars, appliances, books, and other items owned by the debtor. The Wages Exemption protects wages that have not yet been paid from becoming tied up in bankruptcy proceedings. Insurance Exemptions exclude insurance from liquidation. The bankruptcy code specifies even more exemptions that cover child support, alimony, pensions, public benefits, and tools of the trade. A knowledgeable attorney will know the exemptions that apply to his client. It is important to work with an attorney to learn exactly what property will be exempted from bankruptcy proceedings.