I thought it appropriate to explain to her the items that are protected under Federal Bankruptcy Laws and share this with readers.

Under 11 U.S.C. 522, and individual filing for Chapter 7 bankruptcy may exempt (protect) the following items:

• $20,200.00 of equity in real estate, which is used as the primary residence.
• $3,225.00 of equity in one automobile.
• $1,350.00 of value in jewelry.
• $10,775.00 of value in household goods and furnishing.
• $2,025.00 in value, in any implements or tools of the trade.
• The entire balance of retirement accounts, pensions and 401k's that are determined as qualified by the Internal Revenue Code.

Also if a chapter 7 bankruptcy filer does not own a home, or has little or no equity in a home, they can have a "wild card" up to half the value of the real estate exemption ($10,100.00) that can be applied towards anything that falls in any of these categories including money in checking and savings accounts. Also married, filing jointly, doubles the amount of exemptions that are listed above. This is not a complete list of exemptions to see a complete list see 11 U.S.C. 522.