What is an exemption under the bankruptcy laws?

Question

Quizplus · Accepted Answer

An exemption under the bankruptcy laws refers to an asset that is not required to be used to satisfy outstanding debts. This means that even if the debtor has a valuable asset, they may be able to keep it and still file for bankruptcy. The exemption amount varies by state and type of asset.

Answer: A 
 An exemption may also refer to a debt that does not need to be paid. However, this is less common and usually only applies to certain types of debts, such as certain taxes or student loans.

Thus, both option A and C are correct.

What Is an Exemption Under the Bankruptcy Laws