Why Chapter 7 Bankruptcy Exempt Property Changes

The federal exempt property list, as well as many state exemptions, change frequently in response to fluctuations in the consumer price index. The amounts allotted to homestead exemptions of primary importance to most debtors, and this category is the most likely to be affect. Other categories,. such as wild card exemptions or an allowance for jewelry, tend to be more restrictive. As the cost of living increases, the index is intended to reflect government assessment of a reasonable value for each exemption amount. In practice, across the nation, these values range from plentiful to absurd.