Exempt property is property one may hold onto and not give up to during bankruptcy.  A person called the bankruptcy trustee, who represents creditors and may confiscate some of the property you may own, determines and reviews your property and makes the final determination.

Depending on the type of property one owns or wants to keep (exempt), two choices are provided - Federal Exemptions or State Exemptions.

Here are some Massachusetts / Boston Exemptions (ie: State Exemptions) of property you may keep:
• Primary residence of up to $500,000 in equity, called the “Homestead” exemption
• Disability benefits up to $400 a week
• Life insurance proceeds provided there’s a clause not to pay creditors
• Pensions or tax-exempt retirement accounts such as IRAs, 401(k)s, SEP and SIMPLE IRAs, and defined-benefit plans. Traditional, Roth IRAs up to $1,095,00
• ERISA-qualified benefits including IRAs and KEOGHS to specified limits
• Burial plots, tombs, and church pew
• Beds, bedding, heating unit and clothing
• Furniture up to $3000
• Motor vehicle up to $700
• Tools of Trade up to $500

Massachusetts/Boston exemptions are primarily for people who have substantial amount of equity in their primary residence coupled with large amounts of credit card debts.