Editing Bankruptcy (section)

====Debts and exemptions====
While bankruptcy cases are always filed in [[United States Bankruptcy Court]] (an adjunct to the [[U.S. District Courts]]), bankruptcy cases, particularly with respect to the validity of claims and exemptions, are often dependent upon State law.<ref>{{cite web|title=11 U.S. Code § 522 – Exemptions|url=https://www.law.cornell.edu/uscode/text/11/522|website=Legal Information Institute|publisher=Cornell Law School|access-date=19 October 2017|url-status=live|archive-url=https://web.archive.org/web/20170809225102/https://www.law.cornell.edu/uscode/text/11/522|archive-date=9 August 2017}}</ref> A Bankruptcy Exemption defines the property a debtor may retain and preserve through bankruptcy. Certain real and personal property can be exempted on "Schedule C"<ref>{{cite web|url=http://www.uscourts.gov/uscourts/RulesAndPolicies/rules/BK_Forms_Official_2010/B_006C_0410.pdf |title=Schedule C – Property Claimed as Exempt |access-date=2014-03-08 |archive-url=https://web.archive.org/web/20140610221416/http://www.uscourts.gov/uscourts/RulesAndPolicies/rules/BK_Forms_Official_2010/B_006C_0410.pdf |archive-date=2014-06-10 }}</ref> of a debtor's bankruptcy forms, and effectively be taken outside the debtor's bankruptcy estate. Bankruptcy exemptions are available only to individuals filing bankruptcy.<ref>{{cite web |url=http://www.uscourts.gov/FederalCourts/Bankruptcy/BankruptcyBasics/Glossary.aspx |title=Bankruptcy Exemptions Available to Individuals |publisher=United States Courts |access-date=2014-03-08 |url-status=live |archive-url=https://web.archive.org/web/20140310230239/http://www.uscourts.gov/FederalCourts/Bankruptcy/BankruptcyBasics/Glossary.aspx |archive-date=2014-03-10 }}</ref>

There are two alternative systems that can be used to exempt property from a bankruptcy estate, federal exemptions<ref>{{cite web |url=https://www.law.cornell.edu/uscode/text/11/522 |title=Federal Bankruptcy Exemptions: 11 USC § 522 |publisher=Cornell Law School |access-date=2014-03-08 |url-status=live |archive-url=https://web.archive.org/web/20140226000317/http://www.law.cornell.edu/uscode/text/11/522 |archive-date=2014-02-26 }}</ref> (available in some states but not all), and state exemptions (which vary widely between states). For example, Maryland and Virginia, which are adjoining states, have different personal exemption amounts that cannot be seized for payment of debts. This amount is the first $6,000 in property or cash in Maryland,<ref>{{cite web|title=Code of Maryland, Sec. 11–504|url=http://mgaleg.maryland.gov/webmga/frmStatutesText.aspx?article=gcj&section=11-504&ext=html&session=2018RS&tab=subject5|publisher=General Assembly of Maryland|access-date=19 October 2017|url-status=live|archive-url=https://web.archive.org/web/20171019220929/http://mgaleg.maryland.gov/webmga/frmStatutesText.aspx?article=gcj&section=11-504&ext=html&session=2018RS&tab=subject5|archive-date=19 October 2017}}</ref> but normally only the first $5,000 in Virginia.<ref>{{cite web|title=Code of Virginia, Sec. 34-4. Exemption created.|url=https://law.lis.virginia.gov/vacode/title34/chapter2/section34-4/|website=Legislative Information System|publisher=Commonwealth of Virginia|access-date=19 October 2017|url-status=live|archive-url=https://web.archive.org/web/20171019221510/https://law.lis.virginia.gov/vacode/title34/chapter2/section34-4/|archive-date=19 October 2017}}</ref> State law therefore plays a major role in many bankruptcy cases, such that there may be significant differences in the outcome of a bankruptcy case depending upon the state in which it is filed.

After a bankruptcy petition is filed, the court schedules a hearing called a ''341 meeting'' or ''meeting of creditors'', at which the bankruptcy trustee and creditors review the petitioner's petition and supporting schedules, question the petitioner, and can challenge exemptions they believe are improper.<ref>{{cite web|title=What is a 341(a) Meeting of Creditors?|url=http://www.canb.uscourts.gov/faq/general-bankruptcy/what-341a-meeting-creditors|publisher=United States Bankruptcy Court, Northern District of California|access-date=14 May 2017|url-status=live|archive-url=https://web.archive.org/web/20170611070109/http://www.canb.uscourts.gov/faq/general-bankruptcy/what-341a-meeting-creditors|archive-date=11 June 2017}}</ref>